As crypto has grown, so has its scope in what it can transform in the real world.
The Real-World Assets (RWA) sector is emerging as a crucial bridge between traditional finance and decentralized finance (DeFi), offering a new approach to integrating physical assets with blockchain tech. RWAs are off-chain assets that have been tokenized on-chain, allowing them to be represented and transacted within the DeFi ecosystem across any blockchain. This tokenization process converts tangible assets, like real estate, bonds, or even commodities, into digital tokens, making them accessible to a broader range of investors and opening up new avenues for yield generation.
The RWA market is still quite small despite the interest it's garnered. The sector is generally split into the following buckets: treasuries/securities, secondary markets, insurance, collectibles, emerging markets, real estate, and infrastructure. But what led to the rise of tokenizing off-chain assets, and why is it such a compelling narrative?
RWAs were made popular thanks to the success of DeFi as a whole.
Individuals from all across the globe have traded well over $1 trillion of volume on applications like Uniswap, grown the sector’s TVL to over $200 million at its peak, and managed to spark a mini-revolution within the crypto industry thanks to newfound utility in on-chain financial transacting. Emerging as a natural next fit for crypto, RWAs have commanded the narrative and offer a bridge for traditional audiences to take their first steps into crypto. This graphic from Binance Research shows just how quickly RWAs took off in 2023:
RWAs stand out compared to other parts of crypto because ownership and verifiability are two crucial concepts related to blockchains—these are the backbone of RWAs, especially collectible assets. Individuals want to know that what they’re buying is real and will be delivered in the condition they expect. Blockchains help by solving the trust issue, acting as an unbiased, decentralized intermediary for almost any type of transaction required.
The growth of RWAs comes with another trend of increased awareness around assets and how our financial system operates. If the industry can manage to bring important pieces of the financial stack (treasuries, commodities, etc.) on-chain, this is a massively positive signal for crypto as a whole. Whether or not you’re actively involved with RWAs isn’t important - you should be aware of the progress happening in this industry and what’s coming next.
As of 2024, the Total Value Locked (TVL) in the RWA sector has grown to over $6.4 billion, underscoring the increasing adoption and trust in this emerging asset class from both retail and institutional investors. Current category leaders include Ondo Finance, Maker, Usual Money, Solv Protocol, and many others. As users have flocked for new opportunities on-chain, RWAs have presented themselves as an alternative to both crypto-native yields and traditional financial yields.
Here’s how they work.
RWAs can provide a more stable and sustainable source of yield compared to the often volatile returns associated with crypto-native assets. This stability is rooted in the underlying value of real-world assets, which are less susceptible to the extreme price fluctuations typical of digital assets. A great example of a real-world asset that’s already seen traction on-chain is real estate. The real estate market is massive and estimated to be valued at over $3.5 trillion. Almost everyone outside of crypto is familiar with the idea of investing in real estate or securing a mortgage - but what if there was an alternative way to invest in real estate without requiring as much capital upfront?
RWAs can be broadly categorized into two main types: Yield-Bearing Assets and Non-Yield-Bearing Assets. Yield-Bearing Assets dominate the market, comprising approximately 84% of the total TVL in the RWA sector. These assets include debt-based instruments, such as loans and bonds, which generate returns through interest payments or dividends. For instance, in DeFi, protocols like MakerDAO have begun integrating RWAs, using tokenized U.S. Treasury bonds as collateral to issue loans in DAI, their native decentralized stablecoin. This integration has provided a more stable collateral base for the protocol and opened up new investment opportunities for DeFi users seeking exposure to traditional fixed-income assets.
Non-Yield-Bearing Assets, on the other hand, represent ownership in tangible assets like real estate, art, or luxury goods. These assets do not generate regular income but offer the potential for capital appreciation. Tokenization of these assets allows for fractional ownership, making high-value assets more accessible to a wider range of investors.
In the real world, businesses like Vinovest (wine) and Masterworks (art) have performed extremely well after enabling a previously untapped audience to invest in more luxury real-world assets. In the crypto world, platforms like RealT enable investors to purchase fractional ownership in real estate properties, which are represented as digital tokens on-chain. This approach democratizes access to valuable assets and enhances liquidity for holders, as these tokens can be easily traded on secondary markets. The presence of secondary markets makes it more appealing to individuals of higher or lower wealth, as it’s much easier to gain liquidity on assets which historically enables a market to grow larger over time.
The rapid development of the RWA market is driven by the inherent advantages of combining traditional assets with the efficiencies of blockchain technology. By eliminating intermediaries, reducing transaction costs, and increasing transparency (via on-chain mechanisms), RWAs are poised to revolutionize how assets are managed and traded. The integration of RWAs into DeFi protocols represents a significant step towards creating a more inclusive and efficient financial system, where the benefits of blockchain technology can be extended to a broader range of assets and investors.
Which brings us to the topic of this report.
McQueen Labs Inc. (trading as MCQ Markets) partners with blockchain technology companies to offer fractional ownership of high-value assets. Founded with the mission to democratize access to luxury collectibles, MCQ Markets wants to make it easy for anyone to gain exposure to goods they might otherwise not have had access to. Their structure allows the company to segregate the assets and liabilities of each platform series, offering a unique investment opportunity while minimizing risk. The company’s core offerings include luxury automobiles, artwork, and motorsport memorabilia, all of which are tokenized and made available to a broader audience through fractionalized ownership.
This report will provide an in-depth overview of MCQ Markets and their approach to bringing unique luxury assets on-chain. This content will also explore other adjacent RWA projects, their approaches, token utilities, and how MCQ Markets can get a leg up in this market as the demand for luxury good tokenization increases over the following months and years to come.
MCQ Markets Overview
The business model of MCQ Markets is centered around making high-value, often illiquid assets accessible to a wider range of investors. As previously discussed, it can be very difficult for the average individual to express their investment beliefs in a niche asset class like art, collectibles, or car collecting. Not everyone has the money to pay the full cost for a work of art, but they might possess a very opinionated and informed view of this market.
Traditionally, assets like rare cars, fine art or other high-end collectibles have been the domain of the ultra-wealthy due to their high cost and the complexities involved in ownership and management. It’s not easy to just go out and buy one of these assets, as well. There are intermediaries, auction houses, marketplaces, and numerous other roadblocks that might prevent someone from actually securing one of these deals.
MCQ Markets addresses this by allowing investors to purchase fractional shares in these assets, thereby lowering the entry barrier and enabling a more diverse group of investors to participate in the luxury asset market. This model not only opens up new investment avenues but also enhances liquidity in markets that have historically been illiquid - bringing this on-chain improves access and makes payment rails much simpler than existing legacy systems.
MCQ Markets operates through a series structure, where each series is associated with a specific luxury asset or a collection of assets. For example, Series 001 might be linked to a rare 1986 Lamborghini Countach, while Series 002 could be tied to a 1984 Ferrari 512. Each series issues Class A Units to investors, which represent fractional ownership in the underlying asset. These units are tradable, offering investors the flexibility to buy, sell, or hold their investments based on market conditions. This fractional ownership model is appealing because it allows investors to diversify their portfolios across multiple high-value assets without the need for significant capital outlay - something that isn’t possible in the real world.
The company’s revenue model is multi-faceted.
MCQ Markets generates income through initial acquisition fees, ongoing management fees, and eventual asset sales. When an asset is acquired for a series, MCQ Markets charges an acquisition fee, typically a percentage of the asset’s value. The company earns quarterly management fees that cover the costs of asset maintenance, storage, and insurance. Upon the sale of an asset, the proceeds are distributed to investors after deducting any remaining fees, allowing them to realize capital gains. 20% of profits are distributed to MCQ Markets as well.
MCQ Markets also places a strong emphasis on the technological infrastructure that supports its operations. The company utilizes the MCQ Markets Platform, an online investment platform that facilitates the purchase and management of fractionalized luxury assets. This platform is designed to be user-friendly, allowing investors to browse available series, conduct due diligence, and manage their portfolios with ease.
So far, the MCQ Markets’ team and backers have completed over 67 public listings since their inception. MCQ Markets’ strategy is to further increase the amount of assets offered on their platform series’, along with explorations of other alternative luxury assets.
Luxury Asset Market Overview and MCQ Markets’ Role
The luxury asset market is a niche yet highly lucrative sector, encompassing a wide range of valuable items such as classic cars, fine art, rare wines, watches, and real estate.
This market has traditionally been the domain of high-net-worth individuals and institutional investors, drawn by the potential for substantial returns and the prestige associated with owning rare and exquisite items. Over the past decade, the market for luxury assets has seen consistent growth, driven by increasing global wealth, especially in emerging markets, and the rising demand for tangible assets as a hedge against inflation and economic uncertainty. This graphic shows an overview of the luxury market’s size and just how dominant the automobile industry is.
One of the most significant segments within the luxury asset market is classic cars - but why?
The global collector car market, valued at over $30 billion (according to Statista’s estimates), has shown remarkable resilience, even during periods of economic downturn. Individuals of high net worth want luxury goods, but they’re becoming increasingly scarce due to this growing demand. In the 2024 Art Basel and UBS market overview, it was said growth finally slowed, falling 4% YoY but still representing over $65 billion in sales volumes alone. The Financial Times recently reported a similar decline of sales, though the numbers given still represent a very large market worth keeping an eye on.
Iconic brands like Ferrari, Lamborghini, and Porsche remain in high demand, with certain models appreciating in value by double digits annually. For instance, the Hagerty Price Guide Index, which tracks the values of classic cars, has reported substantial increases in the value of top-tier models over the past decade. This growth is fueled by a combination of nostalgia, scarcity, and the perceived investment value of owning a piece of automotive history.
The fine art market is another cornerstone of the luxury asset sector, with a global market size estimated to be around $65 billion. Fine art has historically been a stable investment, often appreciating in value over time, most notably for works by renowned artists. The market for contemporary art has expanded significantly, with record-breaking auction sales becoming more common. In 2021, the global art market rebounded strongly from the pandemic, with online sales accounting for a significant portion of the market as digital platforms made it easier for collectors to buy and sell art.
Watches and jewelry also constitute a significant portion of the luxury asset market. The global watch market, for example, is valued at approximately $9 billion, with brands like Rolex, Patek Philippe, and Audemars Piguet leading the charge. These brands are known for their craftsmanship, heritage, and limited production runs, all of which contribute to their high value and desirability. Collectible watches often appreciate in value, most often rare models or those with historical significance. The auction market for watches has seen several records set in recent years, highlighting the growing interest and investment potential in this segment.
The role of MCQ Markets in the luxury asset market extends beyond merely offering just fractional ownership. Beyond simply investing in cars, the business is much more than just purchasing vehicles and waiting for a return on investment - there are companies that service luxury car markets, motor racing collectibles, restoration deals, specialty engineering capabilities, and many other verticals MCQ Markets can tap into.
The company is also involved in the active management of these assets, ensuring that they are preserved, insured, and maintained to the highest standards. While it would be nice to simply put all of these RWAs on-chain and enable easier acquisitions, there are significant infrastructure needs that cannot be ignored. MCQ Markets is aware of this and provides that level of safety and security, letting its investors feel safe despite the often challenging act of transacting on a blockchain for the first time.
This security guarantee is very important in markets like classic cars, where the condition and provenance of the asset significantly impact its value. By taking an active role in the management of these assets, MCQ Markets not only protects the value of the investments but also enhances the potential for appreciation over time.
The luxury asset market is a dynamic and growing sector with significant investment potential. MCQ Markets, through its innovative approach to fractional ownership and active asset management, is well-positioned to capitalize on the opportunities within this market. By lowering the barriers to entry and enhancing the liquidity of luxury assets, MCQ Markets is not only making these investments more accessible but also driving the evolution of the market itself.
MCQ Markets’ Strategy
MCQ Markets has developed a calculated strategy aimed at disrupting the traditional luxury asset market through the integration of blockchain technology and fractional ownership. At the core of this strategy is the company’s mission to democratize access to high-value assets, which have historically been available only to the ultra-wealthy. By leveraging blockchain’s ability to tokenize assets and enable fractional ownership, MCQ Markets is opening the doors to a broader range of investors, thereby expanding the market and enhancing liquidity.
Additionally, MCQ Markets is partnering with the Mushman Foundation to offer tokenized access to luxury cars through Mushman Foundation’s STO marketplace called Mushman59, which is set to launch on September 30th.
A key element of MCQ Markets’ strategy is its focus on the fractional ownership model, which allows investors to purchase shares in a luxury asset, rather than requiring the capital to buy the entire asset outright. This model not only lowers the barriers to entry but also provides a more flexible investment option, allowing investors to diversify their portfolios across multiple high-value assets. For example, an investor might own fractions of a rare Ferrari, a piece of contemporary art, and a collection of vintage watches, all within MCQ Markets’ ecosystem. This diversification is crucial in a market where individual assets can be highly volatile or subject to specific risks, such as changes in market demand or shifts in cultural trends.
MCQ Markets’ strategy also includes a strong emphasis on asset management. The company takes an active role in the preservation, maintenance, and eventual sale of the assets it tokenizes. By ensuring that each asset is properly managed, MCQ Markets not only protects the interests of its investors but also enhances the potential for asset appreciation. This management is supported by MCQ Markets’ partnerships with industry experts, including appraisers, restorers, and insurers, who help maintain the high standards necessary to sustain value in luxury markets.
Another critical aspect of MCQ Markets’ strategy is its integration with the motorsports industry, specifically through its investors who range from racers, former racers and some of the owners of multiple race teams. They have also attracted some additional household names in sports ownership and biggest names in crypto. This move serves multiple strategic purposes. Firstly, it ties MCQ Markets’ brand to the prestige and excitement of professional motorsports, which appeals to a demographic that values both high performance and exclusivity.
Secondly, the acquisition allows MCQ Markets to diversify its portfolio beyond static assets like cars and art, by incorporating dynamic, revenue-generating assets such as race teams. The motorsports connection also provides opportunities for unique marketing initiatives, such as exclusive events and partnerships, which further enhance MCQ Markets’ brand and attract new investors.
The Mushman59 Utility Token is designed to enhance investor engagement by providing governance rights within the Mushman Foundation Decentralized Autonomous Organization (DAO). Token holders can propose and vote on new investment opportunities, such as the addition of specific luxury cars, art pieces, or even new categories of assets within MCQ’s portfolio. The token also offers priority access to new investment offerings, discounted fees, and other exclusive benefits, creating a community-driven investment platform. This approach not only incentivizes long-term participation but also aligns the interests of MCQ Markets and its investors, fostering a sense of ownership and involvement in the company’s growth.
The Mushman Foundation STO Platform, which facilitates the tokenization and trading of luxury assets, is designed to be user-friendly and secure, ensuring a seamless experience for investors. The platform’s architecture is built to handle the complexities of fractional ownership, including the issuance of digital tokens that represent ownership shares. These tokens are securely stored on the blockchain, ensuring transparency and traceability of ownership. McQueen is continually exploring new technological advancements, such as smart contracts and DeFi integrations, to enhance the functionality and security of its platform.
Another strategic focus for MCQ Markets is the expansion of its market reach through partnerships and collaborations. The company is actively seeking to partner with luxury brands, auction houses, and other stakeholders in the luxury asset market to broaden its offerings and enhance its credibility.
These partnerships not only provide access to high-quality assets but also help MCQ Markets to tap into established networks of buyers, sellers, and collectors. By aligning itself with well-known and respected entities in the luxury market, MCQ Markets can attract a broader audience of investors and enhance the overall value of its platform.
MCQ Markets’ strategy is comprehensive and multi-dimensional, designed to capitalize on the growing interest in luxury assets while leveraging the advantages of blockchain technology. By focusing on fractional ownership, active asset management, strategic industry integration, technological innovation, and strong partnerships, MCQ Markets is well-positioned to disrupt the traditional luxury asset market and establish itself as a leader in the emerging field of tokenized luxury investments through its partnership with Mushman Foundation. As the market for RWAs continues to evolve, MCQ Markets’ strategic initiatives will play a crucial role in driving the company’s growth and delivering value to its investors.
Comparative Analysis to Traditional Models
Traditionally, investing in luxury assets such as classic cars, fine art, and rare watches has been a pursuit reserved for high-net-worth individuals and institutional investors. The conventional model of luxury asset investment typically involves the outright purchase of a valuable item, followed by the responsibility for its maintenance, insurance, storage, and eventual sale. This model demands substantial capital outlay, often running into millions of dollars, which naturally limits participation to those with significant financial resources.
For example, purchasing a rare Ferrari or a Picasso painting requires not only the funds to acquire the asset but also the means to preserve its value over time, including costs related to secure storage, restoration, and specialized insurance.
Traditional luxury asset investments are often illiquid, meaning that converting these assets into cash can be challenging and time-consuming. Selling a high-value asset like a classic car or a piece of fine art typically involves navigating through auction houses or private sales, where finding a buyer who appreciates the asset’s value and is willing to pay the asking price can be difficult. This process is often subject to high transaction fees, including auction house commissions that can range from 10% to 25% of the sale price, further eroding potential returns. These limitations make traditional luxury asset investments not only capital-intensive but also risky, with significant barriers to entry and exit. By integrating crypto, the process becomes less cost-intensive, more transparent, and accessible to everyone.
Liquidity is another critical advantage of fractional ownership.
Fractional ownership represents a significant innovation in the luxury asset investment market, addressing many of the limitations inherent in traditional models. One of the primary advantages of fractional ownership is the lower barrier to entry. By allowing investors to purchase shares in a luxury asset rather than buying the entire asset, fractional ownership makes it possible for a broader range of investors to participate in markets that were previously out of reach.
For instance, instead of needing several million dollars to purchase a rare car, an investor can buy a fraction of the asset for a much smaller amount, such as $10,000 or $50,000, depending on the number of shares issued. Mushman Foundation facilitates this by issuing digital tokens that represent ownership shares, which can be bought, sold, or traded on secondary markets. This liquidity is enhanced by the transparency and efficiency of blockchain tech, which allows for secure, near-instantaneous transactions. As a result, investors can more readily convert their holdings into cash or reinvest in other assets, improving the overall flexibility and attractiveness of luxury asset investments.
Diversification is another benefit of fractional ownership.
Traditional investment models often require significant capital to invest in a single asset, making it difficult to diversify across different asset classes or types. Fractional ownership allows investors to spread their investments across a portfolio of luxury assets, such as classic cars, fine art, and high-end watches. This diversification reduces risk by mitigating the impact of price volatility in any one asset. For example, if the market for classic cars experiences a downturn, the impact on an investor’s portfolio may be cushioned by holdings in other asset classes, such as art or real estate.
The introduction of fractional ownership is reshaping the luxury asset market in several significant ways. First and foremost, it is democratizing access to high-value investments, enabling a broader range of investors to participate in markets that were once exclusive to the wealthy elite. This democratization is expanding the overall market size, as more individuals can afford to invest in luxury assets, driving up demand and potentially increasing the value of these assets over time. For instance, as more investors are able to buy fractions of rare cars or art pieces, the overall market for these items may grow, leading to higher prices and greater returns for all investors involved.
Fractional ownership is also enhancing market liquidity, which is beneficial not only for investors but also for the market as a whole. Increased liquidity allows for more frequent transactions, which can lead to more accurate pricing and a more dynamic market environment. Traditional luxury asset markets have often been characterized by long holding periods and infrequent sales, which can make it difficult to determine the true market value of an asset. Fractional ownership, by enabling more frequent buying and selling, helps create a more active and transparent market, where prices reflect real-time demand and supply dynamics.
Fractional ownership is prompting traditional players in the luxury asset market, such as auction houses and private collectors, to adapt to new technologies and market practices. Auction houses, for example, may need to incorporate digital platforms and blockchain technology into their operations to stay competitive. This shift could lead to a more streamlined and accessible auction process, where fractional shares of assets can be auctioned off to a global audience, rather than being limited to in-person events attended by a small, elite group of bidders. Similarly, private collectors may start to explore fractional sales as a way to monetize their collections while retaining partial ownership and control.
Blockchain technology addresses these concerns by providing a transparent, immutable record of ownership and transaction history. This transparency not only builds trust among investors but also attracts new participants who may have been hesitant to invest in luxury assets due to concerns about authenticity or potential fraud.
Fractional ownership is transforming the luxury asset market by lowering barriers to entry, increasing liquidity, and enabling diversification. These advantages are not only making luxury asset investments more accessible but are also driving significant changes in how the market operates. Traditional players are being forced to adapt, and new opportunities are emerging for investors of all sizes. As fractional ownership continues to gain traction, it is likely to become a dominant model in the luxury asset market, offering a more inclusive, flexible, and transparent investment environment.
A Closer Look at the Marketplaces
The emergence of digital marketplaces has fundamentally transformed the way luxury assets are bought, sold, and managed. Traditionally, the luxury asset market has been dominated by auction houses, private sales, and exclusive dealerships, which often operate within a closed network of wealthy individuals and institutions. These traditional marketplaces are known for their exclusivity, high transaction costs, and lengthy processes, which can be a barrier for many potential investors. However, the rise of blockchain technology and the concept of fractional ownership have given birth to a new breed of digital marketplaces that are democratizing access to these assets and introducing unprecedented levels of liquidity and transparency.
The Mushman Foundation platform facilitates the tokenization and fractional ownership of luxury assets, allowing a broader range of investors to participate in the market. The Mushman Foundation Platform operates by issuing digital tokens that represent fractional shares in specific luxury assets, such as classic cars, fine art, and high-end watches. These tokens are securely stored on the blockchain, ensuring transparency and traceability of ownership. Investors can buy, sell, or trade these tokens on the platform, providing a level of liquidity that is unheard of in traditional luxury asset markets.
The MCQ Markets Platform is designed to be user-friendly, with a seamless interface that allows investors to browse available assets, conduct due diligence, and manage their portfolios. Each asset listed on the platform is associated with a specific series, and detailed information is provided about the asset’s history, condition, and market value. This level of transparency helps investors make informed decisions and reduces the risk of fraud, which has been a concern in traditional luxury markets. The platform offers tools for tracking the performance of individual assets and portfolios, enabling investors to monitor the appreciation of their investments in real-time with verifiable certificates of transactions posted on-chain.
Beyond the MCQ Markets Platform, there are several other digital marketplaces that are shaping the future of the luxury asset market. As mentioned briefly earlier, platforms like RealT and Rally Rd. have gained popularity by offering fractional ownership in real estate and collectible assets, respectively. RealT, for example, allows investors to purchase fractional shares in residential properties, providing them with regular rental income and potential capital appreciation. Rally Rd., on the other hand, focuses on collectible cars, sports memorabilia, and other high-value items, allowing investors to buy shares in these assets and trade them on a secondary market. Both platforms have contributed to the growing trend of democratizing access to traditionally exclusive assets.
MCQ Markets generates revenue through several streams. First, the company charges an acquisition fee when it purchases an asset for a series, typically a percentage of the asset’s value. This fee covers the costs associated with sourcing, appraising, and acquiring the asset.
These fees are either paid in cash or through the issuance of additional Class A Units. When an asset is eventually sold, MCQ Markets also takes a percentage of the sale price as a performance fee before distributing the remaining proceeds to investors, while also taking a cut of the increased value on the asset sold. MCQ Markets’ revenue model is heavily tied to the appreciation and eventual sale of the underlying luxury assets, but is also benefited by an increasing number of real-world assets brought onto blockchains.
By carefully selecting and managing high-value assets, the company aims to generate substantial returns for its investors. The platform also benefits from the trading of fractional shares on secondary markets, where it may charge transaction fees for facilitating these trades.
Rally Rd is a platform that allows investors to purchase fractional shares in rare and collectible assets, including cars, sports memorabilia, vintage watches, and more. Like MCQ Markets, Rally Rd’s model is based on fractional ownership, but it offers a broader range of collectibles beyond luxury cars and art. Rally Rd’s fee structure includes an upfront “Sourcing Fee,” which is typically around 10% of the asset's value. This fee covers the cost of acquiring and preparing the asset for fractional ownership.
MCQ Markets also charges a 1.5% annual management fee, which is calculated based on the total value of the asset and is used to cover storage, insurance, and maintenance costs. Rally Rd earns revenue through secondary market transactions, where it charges a 1.5% fee to both buyers and sellers of fractional shares. Rally Rd’s revenue is primarily driven by the appreciation of the assets it manages and the fees associated with trading these assets on its platform. The company also benefits from a growing user base, as increased trading activity on the platform leads to higher transaction fees. Unlike the Mushman Foundation, Rally Rd does not tokenize its assets on a blockchain, which means its secondary market is more centralized and less transparent compared to platforms that utilize blockchain technology.
RealT is a platform that focuses on tokenizing real estate properties, offering fractional ownership in residential properties through blockchain technology. Investors can purchase tokens representing ownership shares in rental properties, which entitle them to a portion of the rental income generated by the property. RealT charges a 1% listing fee for the initial offering of property tokens, which helps cover the costs of tokenization and listing the property on the platform.
RealT also charges a 2% transaction fee on the purchase of these tokens. RealT takes a small percentage of the rental income generated by each property as a management fee. This fee is used to cover the costs of property management, maintenance, and administration. RealT’s revenue model is distinct from that of McQueen and Rally Rd in that it is closely tied to the ongoing rental income generated by the properties it manages. Investors receive a portion of this rental income, typically distributed in stablecoins such as USDC, reflecting the platform’s emphasis on providing steady, passive income. RealT also earns revenue through secondary market transactions, where property tokens can be traded among investors.
While MCQ Markets, Rally Rd, and RealT all operate within the fractional ownership space, their market focuses are different. MCQ Markets is highly specialized, focusing on luxury assets with a particular emphasis on the high-end car and art markets. Rally Rd, by contrast, offers a broader range of collectible assets, appealing to a wider audience interested in various types of collectibles. RealT, on the other hand, is focused exclusively on real estate, offering a product that appeals to investors seeking exposure to the property market and passive rental income.
The Mushman Foundation and RealT both utilize blockchain technology to tokenize their assets, offering increased transparency, security, and liquidity compared to traditional asset ownership models. Rally Rd, while offering a similar fractional ownership model, does not currently tokenize its assets on a blockchain, which may limit the transparency and flexibility of its marketplace. The use of blockchain by the Mushman Foundation allows for more seamless secondary market transactions and potentially lower transaction costs, depending on the blockchain network’s efficiency.
All three companies charge fees for asset acquisition, management, and secondary market transactions. However, the structure and focus of these fees differ. MCQ Markets places significant emphasis on asset appreciation and performance fees at the point of sale, while Rally Rd and RealT strictly generate ongoing revenue through management fees and transaction fees on secondary markets. It’s worth noting while MCQ Market can charge on both ends of the spectrum, their primary revenue generation comes from this asset appreciation and sale fees. RealT’s unique model also incorporates rental income, providing a steady revenue stream independent of asset appreciation.
The investor experience across these platforms varies due to the different asset classes and market structures they target. MCQ Markets offers a more exclusive, luxury-focused experience, appealing to investors interested in high-value, prestigious assets. Rally Rd provides a broader, more diversified range of collectibles, which may appeal to a wider audience, including those with lower entry capital. RealT’s focus on real estate and rental income appeals to investors looking for steady, passive income with less volatility compared to luxury or collectible assets.
These digital marketplaces are not only making luxury assets more accessible but are also enhancing the overall efficiency of the market. Traditional luxury asset transactions are often slow, with high transaction fees and lengthy settlement times. In contrast, digital marketplaces leverage blockchain technology to streamline the transaction process, reducing costs and enabling near-instantaneous transfers of ownership. This efficiency is extremely necessary in a market where timing can be crucial, such as when taking advantage of short-term price fluctuations or quickly liquidating an asset to free up capital for other investments.
Platforms like Centrifuge and MakerDAO are pioneering the use of blockchain technology to provide liquidity and financing for luxury assets. Centrifuge, for example, allows luxury asset owners to use their tokenized assets as collateral to obtain loans in the DeFi space. This capability not only provides asset owners with additional liquidity but also opens up new opportunities for leveraging luxury assets in ways that were not possible in traditional markets. MakerDAO, through its DAI stablecoin, has also integrated RWAs as collateral, offering a more stable and sustainable yield compared to traditional DeFi assets.
Another key aspect of these digital marketplaces is their ability to offer a global reach. Traditional luxury asset markets are often localized, with auction houses and dealers serving specific geographic regions. Digital marketplaces, however, are accessible from anywhere in the world, allowing investors from different regions to participate in the market. This global reach not only increases the pool of potential buyers and sellers but also contributes to more competitive pricing and greater market liquidity. For example, an investor in Asia can easily purchase a fractional share of a classic car located in Europe through a digital marketplace, something that would have been logistically challenging in the traditional market.
The rise of digital marketplaces is also pushing traditional players in the luxury asset market to innovate. Auction houses like Sotheby’s and Christie’s, which have long been pillars of the luxury market, are increasingly incorporating digital platforms and blockchain technology into their operations. These auction houses have started offering online auctions, accepting cryptocurrency payments, and even experimenting with tokenizing assets. This shift reflects a broader trend of digital transformation in the luxury market, as traditional players recognize the need to adapt to changing consumer preferences and technological advancements.
Token Overview
Based on discussions with the team, this section will explore the tokens of other RWA-focused protocols and examine how the Mushman59 token, ($MUSH), will stack up in utility comparisons.
The utility tokens of various DeFi / RWA platforms, including Maple Finance, Ondo Finance, Centrifuge, and Goldfinch, each offer unique functionalities that contribute to their ecosystems. These tokens typically provide governance rights, fee reductions, staking rewards, and other utilities that incentivize participation and align user interests with the platform's long-term success.
Comparing these token utilities to the planned Mushman59 Utility Token ($MUSH) reveals both commonalities and distinctive approaches, especially in how the Mushman Foundation seeks to integrate token utility within the luxury asset market through a unique combination of mechanisms.
Maple Finance (MPL) is a decentralized credit protocol that facilitates undercollateralized loans for institutional borrowers. The MPL token serves as a governance token, allowing holders to vote on key protocol changes, such as the addition of new lending pools or adjustments to the protocol’s parameters. MPL can also be staked to earn rewards, and token holders can participate in the protocol’s growth by earning a portion of the fees generated by the lending activities, dependent on decentralized governance outcomes.
With a pre-sale scheduled for November 1st, the token’s utility is closely tied to the protocol’s ability to provide efficient and scalable credit services within the DeFi space. This governance and reward mechanism is somewhat similar to the Mushman59 Utility Token’s governance features will look like, where token holders can influence decisions within the McQueen Markets DAO. However, while MPL’s utility is focused on the DeFi credit market, MUSH's utility is tied to the luxury asset investment market, providing unique opportunities for investors to engage with high-value assets.
Ondo Finance (ONDO) operates within the realm of structured products, offering fixed and variable yield options through its DeFi platform. The ONDO token provides governance rights, enabling holders to propose and vote on protocol upgrades, changes to fee structures, and the introduction of new financial products. ONDO also plays a role in incentivizing liquidity providers and rewarding participants who contribute to the platform’s growth. Ondo Finance’s token utility is focused on enhancing yield opportunities for users, differentiating it from Mushman59, which is more centered on luxury asset investments rather than yield generation. While both tokens emphasize governance, the Mushman59 token also integrates unique utilities such as priority access to luxury asset offerings and discounts within the MCQ Market’s Marketplace, which are not typically found in the yield-focused ONDO ecosystem.
Centrifuge (CFG) is a protocol that bridges real-world assets (RWAs) with DeFi by enabling the tokenization of assets like invoices, real estate, and other off-chain assets. The CFG token is used for governance within the Centrifuge protocol, allowing holders to vote on protocol upgrades, asset onboarding, and other critical decisions. CFG tokens can also be staked to secure the network and earn rewards, contributing to the protocol’s overall stability and security. Centrifuge’s focus on tokenizing RWAs aligns closely with MCQ Markets’ mission to bring luxury assets into the blockchain space. However, while Centrifuge targets a broader range of real-world assets, MCQ is specifically focused on luxury assets such as classic cars and fine art. The Mushman59 token’s unique utilities, such as early access to investment opportunities and lifestyle benefits, distinguish it from CFG, which is more concentrated on governance and network security.
Goldfinch (GFI) is a decentralized credit protocol designed to provide loans to borrowers in emerging markets, with a focus on expanding access to capital in regions where traditional finance is limited. The GFI token is central to the protocol’s governance, allowing holders to vote on proposals that affect the protocol’s direction and operations. GFI also provides staking rewards, where users can stake their tokens to earn a portion of the interest generated by the loans. GFI tokens are used to incentivize borrower compliance and repayment. Goldfinch’s utility model is primarily focused on governance and expanding financial inclusion, which contrasts with MCQ Market’s’ luxury asset-centric approach. MUSH offers a blend of governance, financial benefits, and exclusive access to luxury experiences, which sets it apart from GFI’s more traditional DeFi utilities.
In comparison to these platforms, MUSH is unique in its integration of luxury asset investments with blockchain technology. While MPL, ONDO, CFG, and GFI are deeply embedded within the financial services sector, providing governance, staking, and yield generation utilities, MCQ introduces a lifestyle component that is uncommon in the DeFi space. The Mushman59 token will not only offer governance rights and discounts but also provides token holders with access to exclusive events, priority investment opportunities, and other lifestyle-related benefits.
MUSH's buyback and burn mechanism is a feature that shares similarities with the deflationary strategies employed by other utility tokens like Binance’s BNB. This approach, combined with the fixed supply of 1 billion Mushman59 tokens, aims to create scarcity and drive demand, ensuring that the token’s value appreciates over time. While tokens like MPL and ONDO also have mechanisms to reward long-term holders, Mushman Foundation’s focus on luxury assets and its associated lifestyle benefits make it more attractive to a niche market segment that values both financial returns and exclusive access to high-end experiences.
In conclusion, while common elements between MUSH and other utility tokens in the DeFi space exist - such as governance rights, staking rewards, and incentives - MUSHdistinguishes itself by integrating these financial utilities with unique lifestyle benefits tied to the luxury asset market. As the Mushman Foundation continues to develop its platform, the MUSH is likely to play a central role in attracting a diverse range of investors, from traditional asset collectors to blockchain enthusiasts.
Future Outlook
With a novel idea and value proposition, as MCQ Markets continues to expand its presence in the luxury asset market, if team can execute, the platform will be very interesting to follow after it launches on September 30th.
The luxury asset market, with its inherent appeal and potential for appreciation, offers a unique value proposition that resonates with both traditional investors and the crypto-native audience. As more high-net-worth individuals and institutions seek to diversify their portfolios and explore new investment avenues, MCQ Markets’ platform has the potential to sit at the center of this growth if its team can execute correctly. The introduction of the MUSH token may further strengthen the organization's ecosystem, offering investors governance rights, exclusive benefits, and a stake in the platform's future success not possible in traditional business models.
MCQ Markets stands at the forefront of a massively transformative shift in the luxury asset market. By integrating cutting-edge technology with a deep understanding of the luxury goods sector, the company is creating a new paradigm for asset ownership and investment. With its strategic partnerships, innovative platform, and forward-thinking approach, MCQ Markets and Mushman Foundation in partnership have the opportunity to become a leader in the emerging field of tokenized luxury investments.
Learn more about Mushman59: https://x.com/Mushman59, https://www.linkedin.com/company/mushman59/
Disclaimer: This report was commissioned by RWA Services Ltd. This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
As crypto has grown, so has its scope in what it can transform in the real world.
The Real-World Assets (RWA) sector is emerging as a crucial bridge between traditional finance and decentralized finance (DeFi), offering a new approach to integrating physical assets with blockchain tech. RWAs are off-chain assets that have been tokenized on-chain, allowing them to be represented and transacted within the DeFi ecosystem across any blockchain. This tokenization process converts tangible assets, like real estate, bonds, or even commodities, into digital tokens, making them accessible to a broader range of investors and opening up new avenues for yield generation.
The RWA market is still quite small despite the interest it's garnered. The sector is generally split into the following buckets: treasuries/securities, secondary markets, insurance, collectibles, emerging markets, real estate, and infrastructure. But what led to the rise of tokenizing off-chain assets, and why is it such a compelling narrative?
RWAs were made popular thanks to the success of DeFi as a whole.
Individuals from all across the globe have traded well over $1 trillion of volume on applications like Uniswap, grown the sector’s TVL to over $200 million at its peak, and managed to spark a mini-revolution within the crypto industry thanks to newfound utility in on-chain financial transacting. Emerging as a natural next fit for crypto, RWAs have commanded the narrative and offer a bridge for traditional audiences to take their first steps into crypto. This graphic from Binance Research shows just how quickly RWAs took off in 2023:
RWAs stand out compared to other parts of crypto because ownership and verifiability are two crucial concepts related to blockchains—these are the backbone of RWAs, especially collectible assets. Individuals want to know that what they’re buying is real and will be delivered in the condition they expect. Blockchains help by solving the trust issue, acting as an unbiased, decentralized intermediary for almost any type of transaction required.
The growth of RWAs comes with another trend of increased awareness around assets and how our financial system operates. If the industry can manage to bring important pieces of the financial stack (treasuries, commodities, etc.) on-chain, this is a massively positive signal for crypto as a whole. Whether or not you’re actively involved with RWAs isn’t important - you should be aware of the progress happening in this industry and what’s coming next.
As of 2024, the Total Value Locked (TVL) in the RWA sector has grown to over $6.4 billion, underscoring the increasing adoption and trust in this emerging asset class from both retail and institutional investors. Current category leaders include Ondo Finance, Maker, Usual Money, Solv Protocol, and many others. As users have flocked for new opportunities on-chain, RWAs have presented themselves as an alternative to both crypto-native yields and traditional financial yields.
Here’s how they work.
RWAs can provide a more stable and sustainable source of yield compared to the often volatile returns associated with crypto-native assets. This stability is rooted in the underlying value of real-world assets, which are less susceptible to the extreme price fluctuations typical of digital assets. A great example of a real-world asset that’s already seen traction on-chain is real estate. The real estate market is massive and estimated to be valued at over $3.5 trillion. Almost everyone outside of crypto is familiar with the idea of investing in real estate or securing a mortgage - but what if there was an alternative way to invest in real estate without requiring as much capital upfront?
RWAs can be broadly categorized into two main types: Yield-Bearing Assets and Non-Yield-Bearing Assets. Yield-Bearing Assets dominate the market, comprising approximately 84% of the total TVL in the RWA sector. These assets include debt-based instruments, such as loans and bonds, which generate returns through interest payments or dividends. For instance, in DeFi, protocols like MakerDAO have begun integrating RWAs, using tokenized U.S. Treasury bonds as collateral to issue loans in DAI, their native decentralized stablecoin. This integration has provided a more stable collateral base for the protocol and opened up new investment opportunities for DeFi users seeking exposure to traditional fixed-income assets.
Non-Yield-Bearing Assets, on the other hand, represent ownership in tangible assets like real estate, art, or luxury goods. These assets do not generate regular income but offer the potential for capital appreciation. Tokenization of these assets allows for fractional ownership, making high-value assets more accessible to a wider range of investors.
In the real world, businesses like Vinovest (wine) and Masterworks (art) have performed extremely well after enabling a previously untapped audience to invest in more luxury real-world assets. In the crypto world, platforms like RealT enable investors to purchase fractional ownership in real estate properties, which are represented as digital tokens on-chain. This approach democratizes access to valuable assets and enhances liquidity for holders, as these tokens can be easily traded on secondary markets. The presence of secondary markets makes it more appealing to individuals of higher or lower wealth, as it’s much easier to gain liquidity on assets which historically enables a market to grow larger over time.
The rapid development of the RWA market is driven by the inherent advantages of combining traditional assets with the efficiencies of blockchain technology. By eliminating intermediaries, reducing transaction costs, and increasing transparency (via on-chain mechanisms), RWAs are poised to revolutionize how assets are managed and traded. The integration of RWAs into DeFi protocols represents a significant step towards creating a more inclusive and efficient financial system, where the benefits of blockchain technology can be extended to a broader range of assets and investors.
Which brings us to the topic of this report.
McQueen Labs Inc. (trading as MCQ Markets) partners with blockchain technology companies to offer fractional ownership of high-value assets. Founded with the mission to democratize access to luxury collectibles, MCQ Markets wants to make it easy for anyone to gain exposure to goods they might otherwise not have had access to. Their structure allows the company to segregate the assets and liabilities of each platform series, offering a unique investment opportunity while minimizing risk. The company’s core offerings include luxury automobiles, artwork, and motorsport memorabilia, all of which are tokenized and made available to a broader audience through fractionalized ownership.
This report will provide an in-depth overview of MCQ Markets and their approach to bringing unique luxury assets on-chain. This content will also explore other adjacent RWA projects, their approaches, token utilities, and how MCQ Markets can get a leg up in this market as the demand for luxury good tokenization increases over the following months and years to come.
MCQ Markets Overview
The business model of MCQ Markets is centered around making high-value, often illiquid assets accessible to a wider range of investors. As previously discussed, it can be very difficult for the average individual to express their investment beliefs in a niche asset class like art, collectibles, or car collecting. Not everyone has the money to pay the full cost for a work of art, but they might possess a very opinionated and informed view of this market.
Traditionally, assets like rare cars, fine art or other high-end collectibles have been the domain of the ultra-wealthy due to their high cost and the complexities involved in ownership and management. It’s not easy to just go out and buy one of these assets, as well. There are intermediaries, auction houses, marketplaces, and numerous other roadblocks that might prevent someone from actually securing one of these deals.
MCQ Markets addresses this by allowing investors to purchase fractional shares in these assets, thereby lowering the entry barrier and enabling a more diverse group of investors to participate in the luxury asset market. This model not only opens up new investment avenues but also enhances liquidity in markets that have historically been illiquid - bringing this on-chain improves access and makes payment rails much simpler than existing legacy systems.
MCQ Markets operates through a series structure, where each series is associated with a specific luxury asset or a collection of assets. For example, Series 001 might be linked to a rare 1986 Lamborghini Countach, while Series 002 could be tied to a 1984 Ferrari 512. Each series issues Class A Units to investors, which represent fractional ownership in the underlying asset. These units are tradable, offering investors the flexibility to buy, sell, or hold their investments based on market conditions. This fractional ownership model is appealing because it allows investors to diversify their portfolios across multiple high-value assets without the need for significant capital outlay - something that isn’t possible in the real world.
The company’s revenue model is multi-faceted.
MCQ Markets generates income through initial acquisition fees, ongoing management fees, and eventual asset sales. When an asset is acquired for a series, MCQ Markets charges an acquisition fee, typically a percentage of the asset’s value. The company earns quarterly management fees that cover the costs of asset maintenance, storage, and insurance. Upon the sale of an asset, the proceeds are distributed to investors after deducting any remaining fees, allowing them to realize capital gains. 20% of profits are distributed to MCQ Markets as well.
MCQ Markets also places a strong emphasis on the technological infrastructure that supports its operations. The company utilizes the MCQ Markets Platform, an online investment platform that facilitates the purchase and management of fractionalized luxury assets. This platform is designed to be user-friendly, allowing investors to browse available series, conduct due diligence, and manage their portfolios with ease.
So far, the MCQ Markets’ team and backers have completed over 67 public listings since their inception. MCQ Markets’ strategy is to further increase the amount of assets offered on their platform series’, along with explorations of other alternative luxury assets.
Luxury Asset Market Overview and MCQ Markets’ Role
The luxury asset market is a niche yet highly lucrative sector, encompassing a wide range of valuable items such as classic cars, fine art, rare wines, watches, and real estate.
This market has traditionally been the domain of high-net-worth individuals and institutional investors, drawn by the potential for substantial returns and the prestige associated with owning rare and exquisite items. Over the past decade, the market for luxury assets has seen consistent growth, driven by increasing global wealth, especially in emerging markets, and the rising demand for tangible assets as a hedge against inflation and economic uncertainty. This graphic shows an overview of the luxury market’s size and just how dominant the automobile industry is.
One of the most significant segments within the luxury asset market is classic cars - but why?
The global collector car market, valued at over $30 billion (according to Statista’s estimates), has shown remarkable resilience, even during periods of economic downturn. Individuals of high net worth want luxury goods, but they’re becoming increasingly scarce due to this growing demand. In the 2024 Art Basel and UBS market overview, it was said growth finally slowed, falling 4% YoY but still representing over $65 billion in sales volumes alone. The Financial Times recently reported a similar decline of sales, though the numbers given still represent a very large market worth keeping an eye on.
Iconic brands like Ferrari, Lamborghini, and Porsche remain in high demand, with certain models appreciating in value by double digits annually. For instance, the Hagerty Price Guide Index, which tracks the values of classic cars, has reported substantial increases in the value of top-tier models over the past decade. This growth is fueled by a combination of nostalgia, scarcity, and the perceived investment value of owning a piece of automotive history.
The fine art market is another cornerstone of the luxury asset sector, with a global market size estimated to be around $65 billion. Fine art has historically been a stable investment, often appreciating in value over time, most notably for works by renowned artists. The market for contemporary art has expanded significantly, with record-breaking auction sales becoming more common. In 2021, the global art market rebounded strongly from the pandemic, with online sales accounting for a significant portion of the market as digital platforms made it easier for collectors to buy and sell art.
Watches and jewelry also constitute a significant portion of the luxury asset market. The global watch market, for example, is valued at approximately $9 billion, with brands like Rolex, Patek Philippe, and Audemars Piguet leading the charge. These brands are known for their craftsmanship, heritage, and limited production runs, all of which contribute to their high value and desirability. Collectible watches often appreciate in value, most often rare models or those with historical significance. The auction market for watches has seen several records set in recent years, highlighting the growing interest and investment potential in this segment.
The role of MCQ Markets in the luxury asset market extends beyond merely offering just fractional ownership. Beyond simply investing in cars, the business is much more than just purchasing vehicles and waiting for a return on investment - there are companies that service luxury car markets, motor racing collectibles, restoration deals, specialty engineering capabilities, and many other verticals MCQ Markets can tap into.
The company is also involved in the active management of these assets, ensuring that they are preserved, insured, and maintained to the highest standards. While it would be nice to simply put all of these RWAs on-chain and enable easier acquisitions, there are significant infrastructure needs that cannot be ignored. MCQ Markets is aware of this and provides that level of safety and security, letting its investors feel safe despite the often challenging act of transacting on a blockchain for the first time.
This security guarantee is very important in markets like classic cars, where the condition and provenance of the asset significantly impact its value. By taking an active role in the management of these assets, MCQ Markets not only protects the value of the investments but also enhances the potential for appreciation over time.
The luxury asset market is a dynamic and growing sector with significant investment potential. MCQ Markets, through its innovative approach to fractional ownership and active asset management, is well-positioned to capitalize on the opportunities within this market. By lowering the barriers to entry and enhancing the liquidity of luxury assets, MCQ Markets is not only making these investments more accessible but also driving the evolution of the market itself.
MCQ Markets’ Strategy
MCQ Markets has developed a calculated strategy aimed at disrupting the traditional luxury asset market through the integration of blockchain technology and fractional ownership. At the core of this strategy is the company’s mission to democratize access to high-value assets, which have historically been available only to the ultra-wealthy. By leveraging blockchain’s ability to tokenize assets and enable fractional ownership, MCQ Markets is opening the doors to a broader range of investors, thereby expanding the market and enhancing liquidity.
Additionally, MCQ Markets is partnering with the Mushman Foundation to offer tokenized access to luxury cars through Mushman Foundation’s STO marketplace called Mushman59, which is set to launch on September 30th.
A key element of MCQ Markets’ strategy is its focus on the fractional ownership model, which allows investors to purchase shares in a luxury asset, rather than requiring the capital to buy the entire asset outright. This model not only lowers the barriers to entry but also provides a more flexible investment option, allowing investors to diversify their portfolios across multiple high-value assets. For example, an investor might own fractions of a rare Ferrari, a piece of contemporary art, and a collection of vintage watches, all within MCQ Markets’ ecosystem. This diversification is crucial in a market where individual assets can be highly volatile or subject to specific risks, such as changes in market demand or shifts in cultural trends.
MCQ Markets’ strategy also includes a strong emphasis on asset management. The company takes an active role in the preservation, maintenance, and eventual sale of the assets it tokenizes. By ensuring that each asset is properly managed, MCQ Markets not only protects the interests of its investors but also enhances the potential for asset appreciation. This management is supported by MCQ Markets’ partnerships with industry experts, including appraisers, restorers, and insurers, who help maintain the high standards necessary to sustain value in luxury markets.
Another critical aspect of MCQ Markets’ strategy is its integration with the motorsports industry, specifically through its investors who range from racers, former racers and some of the owners of multiple race teams. They have also attracted some additional household names in sports ownership and biggest names in crypto. This move serves multiple strategic purposes. Firstly, it ties MCQ Markets’ brand to the prestige and excitement of professional motorsports, which appeals to a demographic that values both high performance and exclusivity.
Secondly, the acquisition allows MCQ Markets to diversify its portfolio beyond static assets like cars and art, by incorporating dynamic, revenue-generating assets such as race teams. The motorsports connection also provides opportunities for unique marketing initiatives, such as exclusive events and partnerships, which further enhance MCQ Markets’ brand and attract new investors.
The Mushman59 Utility Token is designed to enhance investor engagement by providing governance rights within the Mushman Foundation Decentralized Autonomous Organization (DAO). Token holders can propose and vote on new investment opportunities, such as the addition of specific luxury cars, art pieces, or even new categories of assets within MCQ’s portfolio. The token also offers priority access to new investment offerings, discounted fees, and other exclusive benefits, creating a community-driven investment platform. This approach not only incentivizes long-term participation but also aligns the interests of MCQ Markets and its investors, fostering a sense of ownership and involvement in the company’s growth.
The Mushman Foundation STO Platform, which facilitates the tokenization and trading of luxury assets, is designed to be user-friendly and secure, ensuring a seamless experience for investors. The platform’s architecture is built to handle the complexities of fractional ownership, including the issuance of digital tokens that represent ownership shares. These tokens are securely stored on the blockchain, ensuring transparency and traceability of ownership. McQueen is continually exploring new technological advancements, such as smart contracts and DeFi integrations, to enhance the functionality and security of its platform.
Another strategic focus for MCQ Markets is the expansion of its market reach through partnerships and collaborations. The company is actively seeking to partner with luxury brands, auction houses, and other stakeholders in the luxury asset market to broaden its offerings and enhance its credibility.
These partnerships not only provide access to high-quality assets but also help MCQ Markets to tap into established networks of buyers, sellers, and collectors. By aligning itself with well-known and respected entities in the luxury market, MCQ Markets can attract a broader audience of investors and enhance the overall value of its platform.
MCQ Markets’ strategy is comprehensive and multi-dimensional, designed to capitalize on the growing interest in luxury assets while leveraging the advantages of blockchain technology. By focusing on fractional ownership, active asset management, strategic industry integration, technological innovation, and strong partnerships, MCQ Markets is well-positioned to disrupt the traditional luxury asset market and establish itself as a leader in the emerging field of tokenized luxury investments through its partnership with Mushman Foundation. As the market for RWAs continues to evolve, MCQ Markets’ strategic initiatives will play a crucial role in driving the company’s growth and delivering value to its investors.
Comparative Analysis to Traditional Models
Traditionally, investing in luxury assets such as classic cars, fine art, and rare watches has been a pursuit reserved for high-net-worth individuals and institutional investors. The conventional model of luxury asset investment typically involves the outright purchase of a valuable item, followed by the responsibility for its maintenance, insurance, storage, and eventual sale. This model demands substantial capital outlay, often running into millions of dollars, which naturally limits participation to those with significant financial resources.
For example, purchasing a rare Ferrari or a Picasso painting requires not only the funds to acquire the asset but also the means to preserve its value over time, including costs related to secure storage, restoration, and specialized insurance.
Traditional luxury asset investments are often illiquid, meaning that converting these assets into cash can be challenging and time-consuming. Selling a high-value asset like a classic car or a piece of fine art typically involves navigating through auction houses or private sales, where finding a buyer who appreciates the asset’s value and is willing to pay the asking price can be difficult. This process is often subject to high transaction fees, including auction house commissions that can range from 10% to 25% of the sale price, further eroding potential returns. These limitations make traditional luxury asset investments not only capital-intensive but also risky, with significant barriers to entry and exit. By integrating crypto, the process becomes less cost-intensive, more transparent, and accessible to everyone.
Liquidity is another critical advantage of fractional ownership.
Fractional ownership represents a significant innovation in the luxury asset investment market, addressing many of the limitations inherent in traditional models. One of the primary advantages of fractional ownership is the lower barrier to entry. By allowing investors to purchase shares in a luxury asset rather than buying the entire asset, fractional ownership makes it possible for a broader range of investors to participate in markets that were previously out of reach.
For instance, instead of needing several million dollars to purchase a rare car, an investor can buy a fraction of the asset for a much smaller amount, such as $10,000 or $50,000, depending on the number of shares issued. Mushman Foundation facilitates this by issuing digital tokens that represent ownership shares, which can be bought, sold, or traded on secondary markets. This liquidity is enhanced by the transparency and efficiency of blockchain tech, which allows for secure, near-instantaneous transactions. As a result, investors can more readily convert their holdings into cash or reinvest in other assets, improving the overall flexibility and attractiveness of luxury asset investments.
Diversification is another benefit of fractional ownership.
Traditional investment models often require significant capital to invest in a single asset, making it difficult to diversify across different asset classes or types. Fractional ownership allows investors to spread their investments across a portfolio of luxury assets, such as classic cars, fine art, and high-end watches. This diversification reduces risk by mitigating the impact of price volatility in any one asset. For example, if the market for classic cars experiences a downturn, the impact on an investor’s portfolio may be cushioned by holdings in other asset classes, such as art or real estate.
The introduction of fractional ownership is reshaping the luxury asset market in several significant ways. First and foremost, it is democratizing access to high-value investments, enabling a broader range of investors to participate in markets that were once exclusive to the wealthy elite. This democratization is expanding the overall market size, as more individuals can afford to invest in luxury assets, driving up demand and potentially increasing the value of these assets over time. For instance, as more investors are able to buy fractions of rare cars or art pieces, the overall market for these items may grow, leading to higher prices and greater returns for all investors involved.
Fractional ownership is also enhancing market liquidity, which is beneficial not only for investors but also for the market as a whole. Increased liquidity allows for more frequent transactions, which can lead to more accurate pricing and a more dynamic market environment. Traditional luxury asset markets have often been characterized by long holding periods and infrequent sales, which can make it difficult to determine the true market value of an asset. Fractional ownership, by enabling more frequent buying and selling, helps create a more active and transparent market, where prices reflect real-time demand and supply dynamics.
Fractional ownership is prompting traditional players in the luxury asset market, such as auction houses and private collectors, to adapt to new technologies and market practices. Auction houses, for example, may need to incorporate digital platforms and blockchain technology into their operations to stay competitive. This shift could lead to a more streamlined and accessible auction process, where fractional shares of assets can be auctioned off to a global audience, rather than being limited to in-person events attended by a small, elite group of bidders. Similarly, private collectors may start to explore fractional sales as a way to monetize their collections while retaining partial ownership and control.
Blockchain technology addresses these concerns by providing a transparent, immutable record of ownership and transaction history. This transparency not only builds trust among investors but also attracts new participants who may have been hesitant to invest in luxury assets due to concerns about authenticity or potential fraud.
Fractional ownership is transforming the luxury asset market by lowering barriers to entry, increasing liquidity, and enabling diversification. These advantages are not only making luxury asset investments more accessible but are also driving significant changes in how the market operates. Traditional players are being forced to adapt, and new opportunities are emerging for investors of all sizes. As fractional ownership continues to gain traction, it is likely to become a dominant model in the luxury asset market, offering a more inclusive, flexible, and transparent investment environment.
A Closer Look at the Marketplaces
The emergence of digital marketplaces has fundamentally transformed the way luxury assets are bought, sold, and managed. Traditionally, the luxury asset market has been dominated by auction houses, private sales, and exclusive dealerships, which often operate within a closed network of wealthy individuals and institutions. These traditional marketplaces are known for their exclusivity, high transaction costs, and lengthy processes, which can be a barrier for many potential investors. However, the rise of blockchain technology and the concept of fractional ownership have given birth to a new breed of digital marketplaces that are democratizing access to these assets and introducing unprecedented levels of liquidity and transparency.
The Mushman Foundation platform facilitates the tokenization and fractional ownership of luxury assets, allowing a broader range of investors to participate in the market. The Mushman Foundation Platform operates by issuing digital tokens that represent fractional shares in specific luxury assets, such as classic cars, fine art, and high-end watches. These tokens are securely stored on the blockchain, ensuring transparency and traceability of ownership. Investors can buy, sell, or trade these tokens on the platform, providing a level of liquidity that is unheard of in traditional luxury asset markets.
The MCQ Markets Platform is designed to be user-friendly, with a seamless interface that allows investors to browse available assets, conduct due diligence, and manage their portfolios. Each asset listed on the platform is associated with a specific series, and detailed information is provided about the asset’s history, condition, and market value. This level of transparency helps investors make informed decisions and reduces the risk of fraud, which has been a concern in traditional luxury markets. The platform offers tools for tracking the performance of individual assets and portfolios, enabling investors to monitor the appreciation of their investments in real-time with verifiable certificates of transactions posted on-chain.
Beyond the MCQ Markets Platform, there are several other digital marketplaces that are shaping the future of the luxury asset market. As mentioned briefly earlier, platforms like RealT and Rally Rd. have gained popularity by offering fractional ownership in real estate and collectible assets, respectively. RealT, for example, allows investors to purchase fractional shares in residential properties, providing them with regular rental income and potential capital appreciation. Rally Rd., on the other hand, focuses on collectible cars, sports memorabilia, and other high-value items, allowing investors to buy shares in these assets and trade them on a secondary market. Both platforms have contributed to the growing trend of democratizing access to traditionally exclusive assets.
MCQ Markets generates revenue through several streams. First, the company charges an acquisition fee when it purchases an asset for a series, typically a percentage of the asset’s value. This fee covers the costs associated with sourcing, appraising, and acquiring the asset.
These fees are either paid in cash or through the issuance of additional Class A Units. When an asset is eventually sold, MCQ Markets also takes a percentage of the sale price as a performance fee before distributing the remaining proceeds to investors, while also taking a cut of the increased value on the asset sold. MCQ Markets’ revenue model is heavily tied to the appreciation and eventual sale of the underlying luxury assets, but is also benefited by an increasing number of real-world assets brought onto blockchains.
By carefully selecting and managing high-value assets, the company aims to generate substantial returns for its investors. The platform also benefits from the trading of fractional shares on secondary markets, where it may charge transaction fees for facilitating these trades.
Rally Rd is a platform that allows investors to purchase fractional shares in rare and collectible assets, including cars, sports memorabilia, vintage watches, and more. Like MCQ Markets, Rally Rd’s model is based on fractional ownership, but it offers a broader range of collectibles beyond luxury cars and art. Rally Rd’s fee structure includes an upfront “Sourcing Fee,” which is typically around 10% of the asset's value. This fee covers the cost of acquiring and preparing the asset for fractional ownership.
MCQ Markets also charges a 1.5% annual management fee, which is calculated based on the total value of the asset and is used to cover storage, insurance, and maintenance costs. Rally Rd earns revenue through secondary market transactions, where it charges a 1.5% fee to both buyers and sellers of fractional shares. Rally Rd’s revenue is primarily driven by the appreciation of the assets it manages and the fees associated with trading these assets on its platform. The company also benefits from a growing user base, as increased trading activity on the platform leads to higher transaction fees. Unlike the Mushman Foundation, Rally Rd does not tokenize its assets on a blockchain, which means its secondary market is more centralized and less transparent compared to platforms that utilize blockchain technology.
RealT is a platform that focuses on tokenizing real estate properties, offering fractional ownership in residential properties through blockchain technology. Investors can purchase tokens representing ownership shares in rental properties, which entitle them to a portion of the rental income generated by the property. RealT charges a 1% listing fee for the initial offering of property tokens, which helps cover the costs of tokenization and listing the property on the platform.
RealT also charges a 2% transaction fee on the purchase of these tokens. RealT takes a small percentage of the rental income generated by each property as a management fee. This fee is used to cover the costs of property management, maintenance, and administration. RealT’s revenue model is distinct from that of McQueen and Rally Rd in that it is closely tied to the ongoing rental income generated by the properties it manages. Investors receive a portion of this rental income, typically distributed in stablecoins such as USDC, reflecting the platform’s emphasis on providing steady, passive income. RealT also earns revenue through secondary market transactions, where property tokens can be traded among investors.
While MCQ Markets, Rally Rd, and RealT all operate within the fractional ownership space, their market focuses are different. MCQ Markets is highly specialized, focusing on luxury assets with a particular emphasis on the high-end car and art markets. Rally Rd, by contrast, offers a broader range of collectible assets, appealing to a wider audience interested in various types of collectibles. RealT, on the other hand, is focused exclusively on real estate, offering a product that appeals to investors seeking exposure to the property market and passive rental income.
The Mushman Foundation and RealT both utilize blockchain technology to tokenize their assets, offering increased transparency, security, and liquidity compared to traditional asset ownership models. Rally Rd, while offering a similar fractional ownership model, does not currently tokenize its assets on a blockchain, which may limit the transparency and flexibility of its marketplace. The use of blockchain by the Mushman Foundation allows for more seamless secondary market transactions and potentially lower transaction costs, depending on the blockchain network’s efficiency.
All three companies charge fees for asset acquisition, management, and secondary market transactions. However, the structure and focus of these fees differ. MCQ Markets places significant emphasis on asset appreciation and performance fees at the point of sale, while Rally Rd and RealT strictly generate ongoing revenue through management fees and transaction fees on secondary markets. It’s worth noting while MCQ Market can charge on both ends of the spectrum, their primary revenue generation comes from this asset appreciation and sale fees. RealT’s unique model also incorporates rental income, providing a steady revenue stream independent of asset appreciation.
The investor experience across these platforms varies due to the different asset classes and market structures they target. MCQ Markets offers a more exclusive, luxury-focused experience, appealing to investors interested in high-value, prestigious assets. Rally Rd provides a broader, more diversified range of collectibles, which may appeal to a wider audience, including those with lower entry capital. RealT’s focus on real estate and rental income appeals to investors looking for steady, passive income with less volatility compared to luxury or collectible assets.
These digital marketplaces are not only making luxury assets more accessible but are also enhancing the overall efficiency of the market. Traditional luxury asset transactions are often slow, with high transaction fees and lengthy settlement times. In contrast, digital marketplaces leverage blockchain technology to streamline the transaction process, reducing costs and enabling near-instantaneous transfers of ownership. This efficiency is extremely necessary in a market where timing can be crucial, such as when taking advantage of short-term price fluctuations or quickly liquidating an asset to free up capital for other investments.
Platforms like Centrifuge and MakerDAO are pioneering the use of blockchain technology to provide liquidity and financing for luxury assets. Centrifuge, for example, allows luxury asset owners to use their tokenized assets as collateral to obtain loans in the DeFi space. This capability not only provides asset owners with additional liquidity but also opens up new opportunities for leveraging luxury assets in ways that were not possible in traditional markets. MakerDAO, through its DAI stablecoin, has also integrated RWAs as collateral, offering a more stable and sustainable yield compared to traditional DeFi assets.
Another key aspect of these digital marketplaces is their ability to offer a global reach. Traditional luxury asset markets are often localized, with auction houses and dealers serving specific geographic regions. Digital marketplaces, however, are accessible from anywhere in the world, allowing investors from different regions to participate in the market. This global reach not only increases the pool of potential buyers and sellers but also contributes to more competitive pricing and greater market liquidity. For example, an investor in Asia can easily purchase a fractional share of a classic car located in Europe through a digital marketplace, something that would have been logistically challenging in the traditional market.
The rise of digital marketplaces is also pushing traditional players in the luxury asset market to innovate. Auction houses like Sotheby’s and Christie’s, which have long been pillars of the luxury market, are increasingly incorporating digital platforms and blockchain technology into their operations. These auction houses have started offering online auctions, accepting cryptocurrency payments, and even experimenting with tokenizing assets. This shift reflects a broader trend of digital transformation in the luxury market, as traditional players recognize the need to adapt to changing consumer preferences and technological advancements.
Token Overview
Based on discussions with the team, this section will explore the tokens of other RWA-focused protocols and examine how the Mushman59 token, ($MUSH), will stack up in utility comparisons.
The utility tokens of various DeFi / RWA platforms, including Maple Finance, Ondo Finance, Centrifuge, and Goldfinch, each offer unique functionalities that contribute to their ecosystems. These tokens typically provide governance rights, fee reductions, staking rewards, and other utilities that incentivize participation and align user interests with the platform's long-term success.
Comparing these token utilities to the planned Mushman59 Utility Token ($MUSH) reveals both commonalities and distinctive approaches, especially in how the Mushman Foundation seeks to integrate token utility within the luxury asset market through a unique combination of mechanisms.
Maple Finance (MPL) is a decentralized credit protocol that facilitates undercollateralized loans for institutional borrowers. The MPL token serves as a governance token, allowing holders to vote on key protocol changes, such as the addition of new lending pools or adjustments to the protocol’s parameters. MPL can also be staked to earn rewards, and token holders can participate in the protocol’s growth by earning a portion of the fees generated by the lending activities, dependent on decentralized governance outcomes.
With a pre-sale scheduled for November 1st, the token’s utility is closely tied to the protocol’s ability to provide efficient and scalable credit services within the DeFi space. This governance and reward mechanism is somewhat similar to the Mushman59 Utility Token’s governance features will look like, where token holders can influence decisions within the McQueen Markets DAO. However, while MPL’s utility is focused on the DeFi credit market, MUSH's utility is tied to the luxury asset investment market, providing unique opportunities for investors to engage with high-value assets.
Ondo Finance (ONDO) operates within the realm of structured products, offering fixed and variable yield options through its DeFi platform. The ONDO token provides governance rights, enabling holders to propose and vote on protocol upgrades, changes to fee structures, and the introduction of new financial products. ONDO also plays a role in incentivizing liquidity providers and rewarding participants who contribute to the platform’s growth. Ondo Finance’s token utility is focused on enhancing yield opportunities for users, differentiating it from Mushman59, which is more centered on luxury asset investments rather than yield generation. While both tokens emphasize governance, the Mushman59 token also integrates unique utilities such as priority access to luxury asset offerings and discounts within the MCQ Market’s Marketplace, which are not typically found in the yield-focused ONDO ecosystem.
Centrifuge (CFG) is a protocol that bridges real-world assets (RWAs) with DeFi by enabling the tokenization of assets like invoices, real estate, and other off-chain assets. The CFG token is used for governance within the Centrifuge protocol, allowing holders to vote on protocol upgrades, asset onboarding, and other critical decisions. CFG tokens can also be staked to secure the network and earn rewards, contributing to the protocol’s overall stability and security. Centrifuge’s focus on tokenizing RWAs aligns closely with MCQ Markets’ mission to bring luxury assets into the blockchain space. However, while Centrifuge targets a broader range of real-world assets, MCQ is specifically focused on luxury assets such as classic cars and fine art. The Mushman59 token’s unique utilities, such as early access to investment opportunities and lifestyle benefits, distinguish it from CFG, which is more concentrated on governance and network security.
Goldfinch (GFI) is a decentralized credit protocol designed to provide loans to borrowers in emerging markets, with a focus on expanding access to capital in regions where traditional finance is limited. The GFI token is central to the protocol’s governance, allowing holders to vote on proposals that affect the protocol’s direction and operations. GFI also provides staking rewards, where users can stake their tokens to earn a portion of the interest generated by the loans. GFI tokens are used to incentivize borrower compliance and repayment. Goldfinch’s utility model is primarily focused on governance and expanding financial inclusion, which contrasts with MCQ Market’s’ luxury asset-centric approach. MUSH offers a blend of governance, financial benefits, and exclusive access to luxury experiences, which sets it apart from GFI’s more traditional DeFi utilities.
In comparison to these platforms, MUSH is unique in its integration of luxury asset investments with blockchain technology. While MPL, ONDO, CFG, and GFI are deeply embedded within the financial services sector, providing governance, staking, and yield generation utilities, MCQ introduces a lifestyle component that is uncommon in the DeFi space. The Mushman59 token will not only offer governance rights and discounts but also provides token holders with access to exclusive events, priority investment opportunities, and other lifestyle-related benefits.
MUSH's buyback and burn mechanism is a feature that shares similarities with the deflationary strategies employed by other utility tokens like Binance’s BNB. This approach, combined with the fixed supply of 1 billion Mushman59 tokens, aims to create scarcity and drive demand, ensuring that the token’s value appreciates over time. While tokens like MPL and ONDO also have mechanisms to reward long-term holders, Mushman Foundation’s focus on luxury assets and its associated lifestyle benefits make it more attractive to a niche market segment that values both financial returns and exclusive access to high-end experiences.
In conclusion, while common elements between MUSH and other utility tokens in the DeFi space exist - such as governance rights, staking rewards, and incentives - MUSHdistinguishes itself by integrating these financial utilities with unique lifestyle benefits tied to the luxury asset market. As the Mushman Foundation continues to develop its platform, the MUSH is likely to play a central role in attracting a diverse range of investors, from traditional asset collectors to blockchain enthusiasts.
Future Outlook
With a novel idea and value proposition, as MCQ Markets continues to expand its presence in the luxury asset market, if team can execute, the platform will be very interesting to follow after it launches on September 30th.
The luxury asset market, with its inherent appeal and potential for appreciation, offers a unique value proposition that resonates with both traditional investors and the crypto-native audience. As more high-net-worth individuals and institutions seek to diversify their portfolios and explore new investment avenues, MCQ Markets’ platform has the potential to sit at the center of this growth if its team can execute correctly. The introduction of the MUSH token may further strengthen the organization's ecosystem, offering investors governance rights, exclusive benefits, and a stake in the platform's future success not possible in traditional business models.
MCQ Markets stands at the forefront of a massively transformative shift in the luxury asset market. By integrating cutting-edge technology with a deep understanding of the luxury goods sector, the company is creating a new paradigm for asset ownership and investment. With its strategic partnerships, innovative platform, and forward-thinking approach, MCQ Markets and Mushman Foundation in partnership have the opportunity to become a leader in the emerging field of tokenized luxury investments.
Learn more about Mushman59: https://x.com/Mushman59, https://www.linkedin.com/company/mushman59/
Disclaimer: This report was commissioned by RWA Services Ltd. This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
As crypto has grown, so has its scope in what it can transform in the real world.
The Real-World Assets (RWA) sector is emerging as a crucial bridge between traditional finance and decentralized finance (DeFi), offering a new approach to integrating physical assets with blockchain tech. RWAs are off-chain assets that have been tokenized on-chain, allowing them to be represented and transacted within the DeFi ecosystem across any blockchain. This tokenization process converts tangible assets, like real estate, bonds, or even commodities, into digital tokens, making them accessible to a broader range of investors and opening up new avenues for yield generation.
The RWA market is still quite small despite the interest it's garnered. The sector is generally split into the following buckets: treasuries/securities, secondary markets, insurance, collectibles, emerging markets, real estate, and infrastructure. But what led to the rise of tokenizing off-chain assets, and why is it such a compelling narrative?
RWAs were made popular thanks to the success of DeFi as a whole.
Individuals from all across the globe have traded well over $1 trillion of volume on applications like Uniswap, grown the sector’s TVL to over $200 million at its peak, and managed to spark a mini-revolution within the crypto industry thanks to newfound utility in on-chain financial transacting. Emerging as a natural next fit for crypto, RWAs have commanded the narrative and offer a bridge for traditional audiences to take their first steps into crypto. This graphic from Binance Research shows just how quickly RWAs took off in 2023:
RWAs stand out compared to other parts of crypto because ownership and verifiability are two crucial concepts related to blockchains—these are the backbone of RWAs, especially collectible assets. Individuals want to know that what they’re buying is real and will be delivered in the condition they expect. Blockchains help by solving the trust issue, acting as an unbiased, decentralized intermediary for almost any type of transaction required.
The growth of RWAs comes with another trend of increased awareness around assets and how our financial system operates. If the industry can manage to bring important pieces of the financial stack (treasuries, commodities, etc.) on-chain, this is a massively positive signal for crypto as a whole. Whether or not you’re actively involved with RWAs isn’t important - you should be aware of the progress happening in this industry and what’s coming next.
As of 2024, the Total Value Locked (TVL) in the RWA sector has grown to over $6.4 billion, underscoring the increasing adoption and trust in this emerging asset class from both retail and institutional investors. Current category leaders include Ondo Finance, Maker, Usual Money, Solv Protocol, and many others. As users have flocked for new opportunities on-chain, RWAs have presented themselves as an alternative to both crypto-native yields and traditional financial yields.
Here’s how they work.
RWAs can provide a more stable and sustainable source of yield compared to the often volatile returns associated with crypto-native assets. This stability is rooted in the underlying value of real-world assets, which are less susceptible to the extreme price fluctuations typical of digital assets. A great example of a real-world asset that’s already seen traction on-chain is real estate. The real estate market is massive and estimated to be valued at over $3.5 trillion. Almost everyone outside of crypto is familiar with the idea of investing in real estate or securing a mortgage - but what if there was an alternative way to invest in real estate without requiring as much capital upfront?
RWAs can be broadly categorized into two main types: Yield-Bearing Assets and Non-Yield-Bearing Assets. Yield-Bearing Assets dominate the market, comprising approximately 84% of the total TVL in the RWA sector. These assets include debt-based instruments, such as loans and bonds, which generate returns through interest payments or dividends. For instance, in DeFi, protocols like MakerDAO have begun integrating RWAs, using tokenized U.S. Treasury bonds as collateral to issue loans in DAI, their native decentralized stablecoin. This integration has provided a more stable collateral base for the protocol and opened up new investment opportunities for DeFi users seeking exposure to traditional fixed-income assets.
Non-Yield-Bearing Assets, on the other hand, represent ownership in tangible assets like real estate, art, or luxury goods. These assets do not generate regular income but offer the potential for capital appreciation. Tokenization of these assets allows for fractional ownership, making high-value assets more accessible to a wider range of investors.
In the real world, businesses like Vinovest (wine) and Masterworks (art) have performed extremely well after enabling a previously untapped audience to invest in more luxury real-world assets. In the crypto world, platforms like RealT enable investors to purchase fractional ownership in real estate properties, which are represented as digital tokens on-chain. This approach democratizes access to valuable assets and enhances liquidity for holders, as these tokens can be easily traded on secondary markets. The presence of secondary markets makes it more appealing to individuals of higher or lower wealth, as it’s much easier to gain liquidity on assets which historically enables a market to grow larger over time.
The rapid development of the RWA market is driven by the inherent advantages of combining traditional assets with the efficiencies of blockchain technology. By eliminating intermediaries, reducing transaction costs, and increasing transparency (via on-chain mechanisms), RWAs are poised to revolutionize how assets are managed and traded. The integration of RWAs into DeFi protocols represents a significant step towards creating a more inclusive and efficient financial system, where the benefits of blockchain technology can be extended to a broader range of assets and investors.
Which brings us to the topic of this report.
McQueen Labs Inc. (trading as MCQ Markets) partners with blockchain technology companies to offer fractional ownership of high-value assets. Founded with the mission to democratize access to luxury collectibles, MCQ Markets wants to make it easy for anyone to gain exposure to goods they might otherwise not have had access to. Their structure allows the company to segregate the assets and liabilities of each platform series, offering a unique investment opportunity while minimizing risk. The company’s core offerings include luxury automobiles, artwork, and motorsport memorabilia, all of which are tokenized and made available to a broader audience through fractionalized ownership.
This report will provide an in-depth overview of MCQ Markets and their approach to bringing unique luxury assets on-chain. This content will also explore other adjacent RWA projects, their approaches, token utilities, and how MCQ Markets can get a leg up in this market as the demand for luxury good tokenization increases over the following months and years to come.
MCQ Markets Overview
The business model of MCQ Markets is centered around making high-value, often illiquid assets accessible to a wider range of investors. As previously discussed, it can be very difficult for the average individual to express their investment beliefs in a niche asset class like art, collectibles, or car collecting. Not everyone has the money to pay the full cost for a work of art, but they might possess a very opinionated and informed view of this market.
Traditionally, assets like rare cars, fine art or other high-end collectibles have been the domain of the ultra-wealthy due to their high cost and the complexities involved in ownership and management. It’s not easy to just go out and buy one of these assets, as well. There are intermediaries, auction houses, marketplaces, and numerous other roadblocks that might prevent someone from actually securing one of these deals.
MCQ Markets addresses this by allowing investors to purchase fractional shares in these assets, thereby lowering the entry barrier and enabling a more diverse group of investors to participate in the luxury asset market. This model not only opens up new investment avenues but also enhances liquidity in markets that have historically been illiquid - bringing this on-chain improves access and makes payment rails much simpler than existing legacy systems.
MCQ Markets operates through a series structure, where each series is associated with a specific luxury asset or a collection of assets. For example, Series 001 might be linked to a rare 1986 Lamborghini Countach, while Series 002 could be tied to a 1984 Ferrari 512. Each series issues Class A Units to investors, which represent fractional ownership in the underlying asset. These units are tradable, offering investors the flexibility to buy, sell, or hold their investments based on market conditions. This fractional ownership model is appealing because it allows investors to diversify their portfolios across multiple high-value assets without the need for significant capital outlay - something that isn’t possible in the real world.
The company’s revenue model is multi-faceted.
MCQ Markets generates income through initial acquisition fees, ongoing management fees, and eventual asset sales. When an asset is acquired for a series, MCQ Markets charges an acquisition fee, typically a percentage of the asset’s value. The company earns quarterly management fees that cover the costs of asset maintenance, storage, and insurance. Upon the sale of an asset, the proceeds are distributed to investors after deducting any remaining fees, allowing them to realize capital gains. 20% of profits are distributed to MCQ Markets as well.
MCQ Markets also places a strong emphasis on the technological infrastructure that supports its operations. The company utilizes the MCQ Markets Platform, an online investment platform that facilitates the purchase and management of fractionalized luxury assets. This platform is designed to be user-friendly, allowing investors to browse available series, conduct due diligence, and manage their portfolios with ease.
So far, the MCQ Markets’ team and backers have completed over 67 public listings since their inception. MCQ Markets’ strategy is to further increase the amount of assets offered on their platform series’, along with explorations of other alternative luxury assets.
Luxury Asset Market Overview and MCQ Markets’ Role
The luxury asset market is a niche yet highly lucrative sector, encompassing a wide range of valuable items such as classic cars, fine art, rare wines, watches, and real estate.
This market has traditionally been the domain of high-net-worth individuals and institutional investors, drawn by the potential for substantial returns and the prestige associated with owning rare and exquisite items. Over the past decade, the market for luxury assets has seen consistent growth, driven by increasing global wealth, especially in emerging markets, and the rising demand for tangible assets as a hedge against inflation and economic uncertainty. This graphic shows an overview of the luxury market’s size and just how dominant the automobile industry is.
One of the most significant segments within the luxury asset market is classic cars - but why?
The global collector car market, valued at over $30 billion (according to Statista’s estimates), has shown remarkable resilience, even during periods of economic downturn. Individuals of high net worth want luxury goods, but they’re becoming increasingly scarce due to this growing demand. In the 2024 Art Basel and UBS market overview, it was said growth finally slowed, falling 4% YoY but still representing over $65 billion in sales volumes alone. The Financial Times recently reported a similar decline of sales, though the numbers given still represent a very large market worth keeping an eye on.
Iconic brands like Ferrari, Lamborghini, and Porsche remain in high demand, with certain models appreciating in value by double digits annually. For instance, the Hagerty Price Guide Index, which tracks the values of classic cars, has reported substantial increases in the value of top-tier models over the past decade. This growth is fueled by a combination of nostalgia, scarcity, and the perceived investment value of owning a piece of automotive history.
The fine art market is another cornerstone of the luxury asset sector, with a global market size estimated to be around $65 billion. Fine art has historically been a stable investment, often appreciating in value over time, most notably for works by renowned artists. The market for contemporary art has expanded significantly, with record-breaking auction sales becoming more common. In 2021, the global art market rebounded strongly from the pandemic, with online sales accounting for a significant portion of the market as digital platforms made it easier for collectors to buy and sell art.
Watches and jewelry also constitute a significant portion of the luxury asset market. The global watch market, for example, is valued at approximately $9 billion, with brands like Rolex, Patek Philippe, and Audemars Piguet leading the charge. These brands are known for their craftsmanship, heritage, and limited production runs, all of which contribute to their high value and desirability. Collectible watches often appreciate in value, most often rare models or those with historical significance. The auction market for watches has seen several records set in recent years, highlighting the growing interest and investment potential in this segment.
The role of MCQ Markets in the luxury asset market extends beyond merely offering just fractional ownership. Beyond simply investing in cars, the business is much more than just purchasing vehicles and waiting for a return on investment - there are companies that service luxury car markets, motor racing collectibles, restoration deals, specialty engineering capabilities, and many other verticals MCQ Markets can tap into.
The company is also involved in the active management of these assets, ensuring that they are preserved, insured, and maintained to the highest standards. While it would be nice to simply put all of these RWAs on-chain and enable easier acquisitions, there are significant infrastructure needs that cannot be ignored. MCQ Markets is aware of this and provides that level of safety and security, letting its investors feel safe despite the often challenging act of transacting on a blockchain for the first time.
This security guarantee is very important in markets like classic cars, where the condition and provenance of the asset significantly impact its value. By taking an active role in the management of these assets, MCQ Markets not only protects the value of the investments but also enhances the potential for appreciation over time.
The luxury asset market is a dynamic and growing sector with significant investment potential. MCQ Markets, through its innovative approach to fractional ownership and active asset management, is well-positioned to capitalize on the opportunities within this market. By lowering the barriers to entry and enhancing the liquidity of luxury assets, MCQ Markets is not only making these investments more accessible but also driving the evolution of the market itself.
MCQ Markets’ Strategy
MCQ Markets has developed a calculated strategy aimed at disrupting the traditional luxury asset market through the integration of blockchain technology and fractional ownership. At the core of this strategy is the company’s mission to democratize access to high-value assets, which have historically been available only to the ultra-wealthy. By leveraging blockchain’s ability to tokenize assets and enable fractional ownership, MCQ Markets is opening the doors to a broader range of investors, thereby expanding the market and enhancing liquidity.
Additionally, MCQ Markets is partnering with the Mushman Foundation to offer tokenized access to luxury cars through Mushman Foundation’s STO marketplace called Mushman59, which is set to launch on September 30th.
A key element of MCQ Markets’ strategy is its focus on the fractional ownership model, which allows investors to purchase shares in a luxury asset, rather than requiring the capital to buy the entire asset outright. This model not only lowers the barriers to entry but also provides a more flexible investment option, allowing investors to diversify their portfolios across multiple high-value assets. For example, an investor might own fractions of a rare Ferrari, a piece of contemporary art, and a collection of vintage watches, all within MCQ Markets’ ecosystem. This diversification is crucial in a market where individual assets can be highly volatile or subject to specific risks, such as changes in market demand or shifts in cultural trends.
MCQ Markets’ strategy also includes a strong emphasis on asset management. The company takes an active role in the preservation, maintenance, and eventual sale of the assets it tokenizes. By ensuring that each asset is properly managed, MCQ Markets not only protects the interests of its investors but also enhances the potential for asset appreciation. This management is supported by MCQ Markets’ partnerships with industry experts, including appraisers, restorers, and insurers, who help maintain the high standards necessary to sustain value in luxury markets.
Another critical aspect of MCQ Markets’ strategy is its integration with the motorsports industry, specifically through its investors who range from racers, former racers and some of the owners of multiple race teams. They have also attracted some additional household names in sports ownership and biggest names in crypto. This move serves multiple strategic purposes. Firstly, it ties MCQ Markets’ brand to the prestige and excitement of professional motorsports, which appeals to a demographic that values both high performance and exclusivity.
Secondly, the acquisition allows MCQ Markets to diversify its portfolio beyond static assets like cars and art, by incorporating dynamic, revenue-generating assets such as race teams. The motorsports connection also provides opportunities for unique marketing initiatives, such as exclusive events and partnerships, which further enhance MCQ Markets’ brand and attract new investors.
The Mushman59 Utility Token is designed to enhance investor engagement by providing governance rights within the Mushman Foundation Decentralized Autonomous Organization (DAO). Token holders can propose and vote on new investment opportunities, such as the addition of specific luxury cars, art pieces, or even new categories of assets within MCQ’s portfolio. The token also offers priority access to new investment offerings, discounted fees, and other exclusive benefits, creating a community-driven investment platform. This approach not only incentivizes long-term participation but also aligns the interests of MCQ Markets and its investors, fostering a sense of ownership and involvement in the company’s growth.
The Mushman Foundation STO Platform, which facilitates the tokenization and trading of luxury assets, is designed to be user-friendly and secure, ensuring a seamless experience for investors. The platform’s architecture is built to handle the complexities of fractional ownership, including the issuance of digital tokens that represent ownership shares. These tokens are securely stored on the blockchain, ensuring transparency and traceability of ownership. McQueen is continually exploring new technological advancements, such as smart contracts and DeFi integrations, to enhance the functionality and security of its platform.
Another strategic focus for MCQ Markets is the expansion of its market reach through partnerships and collaborations. The company is actively seeking to partner with luxury brands, auction houses, and other stakeholders in the luxury asset market to broaden its offerings and enhance its credibility.
These partnerships not only provide access to high-quality assets but also help MCQ Markets to tap into established networks of buyers, sellers, and collectors. By aligning itself with well-known and respected entities in the luxury market, MCQ Markets can attract a broader audience of investors and enhance the overall value of its platform.
MCQ Markets’ strategy is comprehensive and multi-dimensional, designed to capitalize on the growing interest in luxury assets while leveraging the advantages of blockchain technology. By focusing on fractional ownership, active asset management, strategic industry integration, technological innovation, and strong partnerships, MCQ Markets is well-positioned to disrupt the traditional luxury asset market and establish itself as a leader in the emerging field of tokenized luxury investments through its partnership with Mushman Foundation. As the market for RWAs continues to evolve, MCQ Markets’ strategic initiatives will play a crucial role in driving the company’s growth and delivering value to its investors.
Comparative Analysis to Traditional Models
Traditionally, investing in luxury assets such as classic cars, fine art, and rare watches has been a pursuit reserved for high-net-worth individuals and institutional investors. The conventional model of luxury asset investment typically involves the outright purchase of a valuable item, followed by the responsibility for its maintenance, insurance, storage, and eventual sale. This model demands substantial capital outlay, often running into millions of dollars, which naturally limits participation to those with significant financial resources.
For example, purchasing a rare Ferrari or a Picasso painting requires not only the funds to acquire the asset but also the means to preserve its value over time, including costs related to secure storage, restoration, and specialized insurance.
Traditional luxury asset investments are often illiquid, meaning that converting these assets into cash can be challenging and time-consuming. Selling a high-value asset like a classic car or a piece of fine art typically involves navigating through auction houses or private sales, where finding a buyer who appreciates the asset’s value and is willing to pay the asking price can be difficult. This process is often subject to high transaction fees, including auction house commissions that can range from 10% to 25% of the sale price, further eroding potential returns. These limitations make traditional luxury asset investments not only capital-intensive but also risky, with significant barriers to entry and exit. By integrating crypto, the process becomes less cost-intensive, more transparent, and accessible to everyone.
Liquidity is another critical advantage of fractional ownership.
Fractional ownership represents a significant innovation in the luxury asset investment market, addressing many of the limitations inherent in traditional models. One of the primary advantages of fractional ownership is the lower barrier to entry. By allowing investors to purchase shares in a luxury asset rather than buying the entire asset, fractional ownership makes it possible for a broader range of investors to participate in markets that were previously out of reach.
For instance, instead of needing several million dollars to purchase a rare car, an investor can buy a fraction of the asset for a much smaller amount, such as $10,000 or $50,000, depending on the number of shares issued. Mushman Foundation facilitates this by issuing digital tokens that represent ownership shares, which can be bought, sold, or traded on secondary markets. This liquidity is enhanced by the transparency and efficiency of blockchain tech, which allows for secure, near-instantaneous transactions. As a result, investors can more readily convert their holdings into cash or reinvest in other assets, improving the overall flexibility and attractiveness of luxury asset investments.
Diversification is another benefit of fractional ownership.
Traditional investment models often require significant capital to invest in a single asset, making it difficult to diversify across different asset classes or types. Fractional ownership allows investors to spread their investments across a portfolio of luxury assets, such as classic cars, fine art, and high-end watches. This diversification reduces risk by mitigating the impact of price volatility in any one asset. For example, if the market for classic cars experiences a downturn, the impact on an investor’s portfolio may be cushioned by holdings in other asset classes, such as art or real estate.
The introduction of fractional ownership is reshaping the luxury asset market in several significant ways. First and foremost, it is democratizing access to high-value investments, enabling a broader range of investors to participate in markets that were once exclusive to the wealthy elite. This democratization is expanding the overall market size, as more individuals can afford to invest in luxury assets, driving up demand and potentially increasing the value of these assets over time. For instance, as more investors are able to buy fractions of rare cars or art pieces, the overall market for these items may grow, leading to higher prices and greater returns for all investors involved.
Fractional ownership is also enhancing market liquidity, which is beneficial not only for investors but also for the market as a whole. Increased liquidity allows for more frequent transactions, which can lead to more accurate pricing and a more dynamic market environment. Traditional luxury asset markets have often been characterized by long holding periods and infrequent sales, which can make it difficult to determine the true market value of an asset. Fractional ownership, by enabling more frequent buying and selling, helps create a more active and transparent market, where prices reflect real-time demand and supply dynamics.
Fractional ownership is prompting traditional players in the luxury asset market, such as auction houses and private collectors, to adapt to new technologies and market practices. Auction houses, for example, may need to incorporate digital platforms and blockchain technology into their operations to stay competitive. This shift could lead to a more streamlined and accessible auction process, where fractional shares of assets can be auctioned off to a global audience, rather than being limited to in-person events attended by a small, elite group of bidders. Similarly, private collectors may start to explore fractional sales as a way to monetize their collections while retaining partial ownership and control.
Blockchain technology addresses these concerns by providing a transparent, immutable record of ownership and transaction history. This transparency not only builds trust among investors but also attracts new participants who may have been hesitant to invest in luxury assets due to concerns about authenticity or potential fraud.
Fractional ownership is transforming the luxury asset market by lowering barriers to entry, increasing liquidity, and enabling diversification. These advantages are not only making luxury asset investments more accessible but are also driving significant changes in how the market operates. Traditional players are being forced to adapt, and new opportunities are emerging for investors of all sizes. As fractional ownership continues to gain traction, it is likely to become a dominant model in the luxury asset market, offering a more inclusive, flexible, and transparent investment environment.
A Closer Look at the Marketplaces
The emergence of digital marketplaces has fundamentally transformed the way luxury assets are bought, sold, and managed. Traditionally, the luxury asset market has been dominated by auction houses, private sales, and exclusive dealerships, which often operate within a closed network of wealthy individuals and institutions. These traditional marketplaces are known for their exclusivity, high transaction costs, and lengthy processes, which can be a barrier for many potential investors. However, the rise of blockchain technology and the concept of fractional ownership have given birth to a new breed of digital marketplaces that are democratizing access to these assets and introducing unprecedented levels of liquidity and transparency.
The Mushman Foundation platform facilitates the tokenization and fractional ownership of luxury assets, allowing a broader range of investors to participate in the market. The Mushman Foundation Platform operates by issuing digital tokens that represent fractional shares in specific luxury assets, such as classic cars, fine art, and high-end watches. These tokens are securely stored on the blockchain, ensuring transparency and traceability of ownership. Investors can buy, sell, or trade these tokens on the platform, providing a level of liquidity that is unheard of in traditional luxury asset markets.
The MCQ Markets Platform is designed to be user-friendly, with a seamless interface that allows investors to browse available assets, conduct due diligence, and manage their portfolios. Each asset listed on the platform is associated with a specific series, and detailed information is provided about the asset’s history, condition, and market value. This level of transparency helps investors make informed decisions and reduces the risk of fraud, which has been a concern in traditional luxury markets. The platform offers tools for tracking the performance of individual assets and portfolios, enabling investors to monitor the appreciation of their investments in real-time with verifiable certificates of transactions posted on-chain.
Beyond the MCQ Markets Platform, there are several other digital marketplaces that are shaping the future of the luxury asset market. As mentioned briefly earlier, platforms like RealT and Rally Rd. have gained popularity by offering fractional ownership in real estate and collectible assets, respectively. RealT, for example, allows investors to purchase fractional shares in residential properties, providing them with regular rental income and potential capital appreciation. Rally Rd., on the other hand, focuses on collectible cars, sports memorabilia, and other high-value items, allowing investors to buy shares in these assets and trade them on a secondary market. Both platforms have contributed to the growing trend of democratizing access to traditionally exclusive assets.
MCQ Markets generates revenue through several streams. First, the company charges an acquisition fee when it purchases an asset for a series, typically a percentage of the asset’s value. This fee covers the costs associated with sourcing, appraising, and acquiring the asset.
These fees are either paid in cash or through the issuance of additional Class A Units. When an asset is eventually sold, MCQ Markets also takes a percentage of the sale price as a performance fee before distributing the remaining proceeds to investors, while also taking a cut of the increased value on the asset sold. MCQ Markets’ revenue model is heavily tied to the appreciation and eventual sale of the underlying luxury assets, but is also benefited by an increasing number of real-world assets brought onto blockchains.
By carefully selecting and managing high-value assets, the company aims to generate substantial returns for its investors. The platform also benefits from the trading of fractional shares on secondary markets, where it may charge transaction fees for facilitating these trades.
Rally Rd is a platform that allows investors to purchase fractional shares in rare and collectible assets, including cars, sports memorabilia, vintage watches, and more. Like MCQ Markets, Rally Rd’s model is based on fractional ownership, but it offers a broader range of collectibles beyond luxury cars and art. Rally Rd’s fee structure includes an upfront “Sourcing Fee,” which is typically around 10% of the asset's value. This fee covers the cost of acquiring and preparing the asset for fractional ownership.
MCQ Markets also charges a 1.5% annual management fee, which is calculated based on the total value of the asset and is used to cover storage, insurance, and maintenance costs. Rally Rd earns revenue through secondary market transactions, where it charges a 1.5% fee to both buyers and sellers of fractional shares. Rally Rd’s revenue is primarily driven by the appreciation of the assets it manages and the fees associated with trading these assets on its platform. The company also benefits from a growing user base, as increased trading activity on the platform leads to higher transaction fees. Unlike the Mushman Foundation, Rally Rd does not tokenize its assets on a blockchain, which means its secondary market is more centralized and less transparent compared to platforms that utilize blockchain technology.
RealT is a platform that focuses on tokenizing real estate properties, offering fractional ownership in residential properties through blockchain technology. Investors can purchase tokens representing ownership shares in rental properties, which entitle them to a portion of the rental income generated by the property. RealT charges a 1% listing fee for the initial offering of property tokens, which helps cover the costs of tokenization and listing the property on the platform.
RealT also charges a 2% transaction fee on the purchase of these tokens. RealT takes a small percentage of the rental income generated by each property as a management fee. This fee is used to cover the costs of property management, maintenance, and administration. RealT’s revenue model is distinct from that of McQueen and Rally Rd in that it is closely tied to the ongoing rental income generated by the properties it manages. Investors receive a portion of this rental income, typically distributed in stablecoins such as USDC, reflecting the platform’s emphasis on providing steady, passive income. RealT also earns revenue through secondary market transactions, where property tokens can be traded among investors.
While MCQ Markets, Rally Rd, and RealT all operate within the fractional ownership space, their market focuses are different. MCQ Markets is highly specialized, focusing on luxury assets with a particular emphasis on the high-end car and art markets. Rally Rd, by contrast, offers a broader range of collectible assets, appealing to a wider audience interested in various types of collectibles. RealT, on the other hand, is focused exclusively on real estate, offering a product that appeals to investors seeking exposure to the property market and passive rental income.
The Mushman Foundation and RealT both utilize blockchain technology to tokenize their assets, offering increased transparency, security, and liquidity compared to traditional asset ownership models. Rally Rd, while offering a similar fractional ownership model, does not currently tokenize its assets on a blockchain, which may limit the transparency and flexibility of its marketplace. The use of blockchain by the Mushman Foundation allows for more seamless secondary market transactions and potentially lower transaction costs, depending on the blockchain network’s efficiency.
All three companies charge fees for asset acquisition, management, and secondary market transactions. However, the structure and focus of these fees differ. MCQ Markets places significant emphasis on asset appreciation and performance fees at the point of sale, while Rally Rd and RealT strictly generate ongoing revenue through management fees and transaction fees on secondary markets. It’s worth noting while MCQ Market can charge on both ends of the spectrum, their primary revenue generation comes from this asset appreciation and sale fees. RealT’s unique model also incorporates rental income, providing a steady revenue stream independent of asset appreciation.
The investor experience across these platforms varies due to the different asset classes and market structures they target. MCQ Markets offers a more exclusive, luxury-focused experience, appealing to investors interested in high-value, prestigious assets. Rally Rd provides a broader, more diversified range of collectibles, which may appeal to a wider audience, including those with lower entry capital. RealT’s focus on real estate and rental income appeals to investors looking for steady, passive income with less volatility compared to luxury or collectible assets.
These digital marketplaces are not only making luxury assets more accessible but are also enhancing the overall efficiency of the market. Traditional luxury asset transactions are often slow, with high transaction fees and lengthy settlement times. In contrast, digital marketplaces leverage blockchain technology to streamline the transaction process, reducing costs and enabling near-instantaneous transfers of ownership. This efficiency is extremely necessary in a market where timing can be crucial, such as when taking advantage of short-term price fluctuations or quickly liquidating an asset to free up capital for other investments.
Platforms like Centrifuge and MakerDAO are pioneering the use of blockchain technology to provide liquidity and financing for luxury assets. Centrifuge, for example, allows luxury asset owners to use their tokenized assets as collateral to obtain loans in the DeFi space. This capability not only provides asset owners with additional liquidity but also opens up new opportunities for leveraging luxury assets in ways that were not possible in traditional markets. MakerDAO, through its DAI stablecoin, has also integrated RWAs as collateral, offering a more stable and sustainable yield compared to traditional DeFi assets.
Another key aspect of these digital marketplaces is their ability to offer a global reach. Traditional luxury asset markets are often localized, with auction houses and dealers serving specific geographic regions. Digital marketplaces, however, are accessible from anywhere in the world, allowing investors from different regions to participate in the market. This global reach not only increases the pool of potential buyers and sellers but also contributes to more competitive pricing and greater market liquidity. For example, an investor in Asia can easily purchase a fractional share of a classic car located in Europe through a digital marketplace, something that would have been logistically challenging in the traditional market.
The rise of digital marketplaces is also pushing traditional players in the luxury asset market to innovate. Auction houses like Sotheby’s and Christie’s, which have long been pillars of the luxury market, are increasingly incorporating digital platforms and blockchain technology into their operations. These auction houses have started offering online auctions, accepting cryptocurrency payments, and even experimenting with tokenizing assets. This shift reflects a broader trend of digital transformation in the luxury market, as traditional players recognize the need to adapt to changing consumer preferences and technological advancements.
Token Overview
Based on discussions with the team, this section will explore the tokens of other RWA-focused protocols and examine how the Mushman59 token, ($MUSH), will stack up in utility comparisons.
The utility tokens of various DeFi / RWA platforms, including Maple Finance, Ondo Finance, Centrifuge, and Goldfinch, each offer unique functionalities that contribute to their ecosystems. These tokens typically provide governance rights, fee reductions, staking rewards, and other utilities that incentivize participation and align user interests with the platform's long-term success.
Comparing these token utilities to the planned Mushman59 Utility Token ($MUSH) reveals both commonalities and distinctive approaches, especially in how the Mushman Foundation seeks to integrate token utility within the luxury asset market through a unique combination of mechanisms.
Maple Finance (MPL) is a decentralized credit protocol that facilitates undercollateralized loans for institutional borrowers. The MPL token serves as a governance token, allowing holders to vote on key protocol changes, such as the addition of new lending pools or adjustments to the protocol’s parameters. MPL can also be staked to earn rewards, and token holders can participate in the protocol’s growth by earning a portion of the fees generated by the lending activities, dependent on decentralized governance outcomes.
With a pre-sale scheduled for November 1st, the token’s utility is closely tied to the protocol’s ability to provide efficient and scalable credit services within the DeFi space. This governance and reward mechanism is somewhat similar to the Mushman59 Utility Token’s governance features will look like, where token holders can influence decisions within the McQueen Markets DAO. However, while MPL’s utility is focused on the DeFi credit market, MUSH's utility is tied to the luxury asset investment market, providing unique opportunities for investors to engage with high-value assets.
Ondo Finance (ONDO) operates within the realm of structured products, offering fixed and variable yield options through its DeFi platform. The ONDO token provides governance rights, enabling holders to propose and vote on protocol upgrades, changes to fee structures, and the introduction of new financial products. ONDO also plays a role in incentivizing liquidity providers and rewarding participants who contribute to the platform’s growth. Ondo Finance’s token utility is focused on enhancing yield opportunities for users, differentiating it from Mushman59, which is more centered on luxury asset investments rather than yield generation. While both tokens emphasize governance, the Mushman59 token also integrates unique utilities such as priority access to luxury asset offerings and discounts within the MCQ Market’s Marketplace, which are not typically found in the yield-focused ONDO ecosystem.
Centrifuge (CFG) is a protocol that bridges real-world assets (RWAs) with DeFi by enabling the tokenization of assets like invoices, real estate, and other off-chain assets. The CFG token is used for governance within the Centrifuge protocol, allowing holders to vote on protocol upgrades, asset onboarding, and other critical decisions. CFG tokens can also be staked to secure the network and earn rewards, contributing to the protocol’s overall stability and security. Centrifuge’s focus on tokenizing RWAs aligns closely with MCQ Markets’ mission to bring luxury assets into the blockchain space. However, while Centrifuge targets a broader range of real-world assets, MCQ is specifically focused on luxury assets such as classic cars and fine art. The Mushman59 token’s unique utilities, such as early access to investment opportunities and lifestyle benefits, distinguish it from CFG, which is more concentrated on governance and network security.
Goldfinch (GFI) is a decentralized credit protocol designed to provide loans to borrowers in emerging markets, with a focus on expanding access to capital in regions where traditional finance is limited. The GFI token is central to the protocol’s governance, allowing holders to vote on proposals that affect the protocol’s direction and operations. GFI also provides staking rewards, where users can stake their tokens to earn a portion of the interest generated by the loans. GFI tokens are used to incentivize borrower compliance and repayment. Goldfinch’s utility model is primarily focused on governance and expanding financial inclusion, which contrasts with MCQ Market’s’ luxury asset-centric approach. MUSH offers a blend of governance, financial benefits, and exclusive access to luxury experiences, which sets it apart from GFI’s more traditional DeFi utilities.
In comparison to these platforms, MUSH is unique in its integration of luxury asset investments with blockchain technology. While MPL, ONDO, CFG, and GFI are deeply embedded within the financial services sector, providing governance, staking, and yield generation utilities, MCQ introduces a lifestyle component that is uncommon in the DeFi space. The Mushman59 token will not only offer governance rights and discounts but also provides token holders with access to exclusive events, priority investment opportunities, and other lifestyle-related benefits.
MUSH's buyback and burn mechanism is a feature that shares similarities with the deflationary strategies employed by other utility tokens like Binance’s BNB. This approach, combined with the fixed supply of 1 billion Mushman59 tokens, aims to create scarcity and drive demand, ensuring that the token’s value appreciates over time. While tokens like MPL and ONDO also have mechanisms to reward long-term holders, Mushman Foundation’s focus on luxury assets and its associated lifestyle benefits make it more attractive to a niche market segment that values both financial returns and exclusive access to high-end experiences.
In conclusion, while common elements between MUSH and other utility tokens in the DeFi space exist - such as governance rights, staking rewards, and incentives - MUSHdistinguishes itself by integrating these financial utilities with unique lifestyle benefits tied to the luxury asset market. As the Mushman Foundation continues to develop its platform, the MUSH is likely to play a central role in attracting a diverse range of investors, from traditional asset collectors to blockchain enthusiasts.
Future Outlook
With a novel idea and value proposition, as MCQ Markets continues to expand its presence in the luxury asset market, if team can execute, the platform will be very interesting to follow after it launches on September 30th.
The luxury asset market, with its inherent appeal and potential for appreciation, offers a unique value proposition that resonates with both traditional investors and the crypto-native audience. As more high-net-worth individuals and institutions seek to diversify their portfolios and explore new investment avenues, MCQ Markets’ platform has the potential to sit at the center of this growth if its team can execute correctly. The introduction of the MUSH token may further strengthen the organization's ecosystem, offering investors governance rights, exclusive benefits, and a stake in the platform's future success not possible in traditional business models.
MCQ Markets stands at the forefront of a massively transformative shift in the luxury asset market. By integrating cutting-edge technology with a deep understanding of the luxury goods sector, the company is creating a new paradigm for asset ownership and investment. With its strategic partnerships, innovative platform, and forward-thinking approach, MCQ Markets and Mushman Foundation in partnership have the opportunity to become a leader in the emerging field of tokenized luxury investments.
Learn more about Mushman59: https://x.com/Mushman59, https://www.linkedin.com/company/mushman59/
Disclaimer: This report was commissioned by RWA Services Ltd. This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
